TUI Group has reached an agreement with UK investor Cinven Capital Management and Canada Pension Plan Investment Board to sell Hotelbeds Group for around 1.2 billion euros. The Executive Board and the Supervisory Board of TUI Group approved the disposal in Berlin today. The transaction, which is still subject to the relevant regulatory approvals, is expected to complete by end of September 2016.
Fritz Joussen, CEO TUI Group: “This is a very successful transaction – a good deal for the future of Hotelbeds and for TUI Group shareholders as well as our continued growth in our core Tourism business. With the disposal of Hotelbeds, we consistently implement our strategy and strengthen our alignment as the world’s number one tourism group. There were numerous bidders for Hotelbeds Group. Following intensive negotiations, we decided to sell Hotelbeds to Cinven Capital Management and Canada Pension Plan Investment Board.“
Following its transformation in the past few years, TUI Group has had a clear strategic agenda, covering the complete value chain from distribution via flight all the way to Group-owned hotels and cruise ships as well as destination services. The Group seeks to further strengthen this positioning. “We combine the economies of scale of a global player with the strengths of our local markets and companies and their customer focus. We will use the disposal proceeds to continue our growth path, in particular in terms of content, and strengthen our balance sheet,” says Joussen.
Hotelbeds Group is the number one bedbank worldwide, offering hotel capacity to travel agencies and tour operators in more than 120 countries. As Hotelbeds Group is based on a different business model and strategy, it has been managed as a separate company outside TUI Group’s core Tourism business.