European tourism group TUI has agreed a deal to sell its Hotelbeds unit to private equity group Cinven and Canada Pension Plan Investment Board for 1.191 billion euros ($1.35 billion) in cash, it said on Thursday.
TUI put its Hotelbeds unit, which sells hotels rooms to wholesale customers such as travel agencies and tour operators, up for sale because it didn’t fit with its other tour operating, cruise and hotel businesses.
Hotelbeds reported turnover of 1.06 billion euros and underlying EBITA of 69 million in the year to end September 2015.
The proceeds will be used to invest in further growth and strengthen TUI’s balance sheet, it said, adding the transaction is expected to complete by the end of September.
London-listed TUI is due to give a half-year trading update on May 11.
Source: Reuters
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