MONTREAL — Transat A.T. Inc. has confirmed that German company TUI AG has made a firm offer to purchase its Transat France and Tourgreece tour businesses, worth about $80.3 million.
The Montreal-based company says it expects the € 54.5 million deal with TUI AG to close before Oct. 31, 2016, pending various approvals.
“This transaction would be a major step toward delivering on our strategic plan, which calls for a focus on Transat’s profitable expansion in the Americas and on the transatlantic market as a vertically-integrated tour operator, leisure airline and hotel company,” said Jean-Marc Eustache, President and Chief Executive Officer of Transat A.T. Inc.
Elie Bruyninckx, Managing Director of TUI Western Region, also commented: “Transat France is an organization with many assets and talents that will further enhance the presence of TUI in France. Joining TUI’s and Transat France’s forces means that we would be able to offer a broader and unique product range with more flexibility for our guests, more departure airports and more choice in length of stay.”
Transat A.T. first announced it was looking for buyers for some of its European operations back in January. The proposed transaction would have no impact on Transat’s transatlantic program or on the operations, personnel, distribution network and growth strategy of Air Transat. The company did not provide further comment, at least until it releases its quarterly results on June 9.