TUI sells Travelopia to private equity firm
TUI Group has reached an agreement to sell Travelopia to private equity firm KKR for £325 million.
The travel giant announced its intention to sell Travelopia last May as part of its strategy of transforming itself into an integrated tourism business focused on hotel and cruise brands.
The proceeds will fund expansion of these segments.
CEO Fritz Joussen said: "The sale of Travelopia is the next strategic step in sharpening TUI’s profile. We consistently continue to focus on becoming a vertically integrated tourism business.
"Both the Group and its shareholders benefit from the negotiated result. We have ambitious goals and want to take the TUI brand into new regions in the world in the coming years. A clear strategic direction supports this course."
Travelopia was previously part of Specialist Group and had a portfolio of more than 50 specialist travel brands.
It had been managed as an independent unit since the merger of TUI AG and TUI Travel PLC at the end of 2014.
"Due to their differing business models and strategic focus, there is little vertical integration with the core tourism businesses," said a statement.
"The potential impact on profitability and the large amount of brands were the basis for the decision not to combine the portfolio under the TUI brand."
In the last financial year to September 30 2016, Travelopia generated turnover in the TUI AG accounts of €1.171 billion, underlying EBITA of €26 million, and underlying EBITDA of €50 million.
The unit has been treated as discontinued operations in TUI’s results since September 30.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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