TUI Group has reached an agreement with the New York-based private equity firm KKR, to sell Travelopia, its collection of 50 specialty tour operator brands, for £325 million ($405 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. Last April, the company also sold its bedbank, Hotelbeds, to the London-based private equity group Cinven and the Canada Pension Plan Investment Board (CPPIB).
“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,” said CEO Fritz Joussen. “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.”
The transaction is the second move in as many months by KKR into the tour and travel business. On Dec. 13th, KKR, joined with an affiliate of Denver-based KSL Capital Partners and purchased Apple Leisure Group (which includes the operator Apple Vacations®) from Boston-based Bain Capital.