Transat receives a firm purchase offer from TUI AG for its French and Greek tour operating units

MONTREAL, May 11, 2016 /CNW Telbec/ - Transat A.T. Inc., one of the world's largest integrated tourism companies and Canada's holiday travel leader, has received a firm offer from TUI AG, the world's leading tourism business, to purchase its Transat France and Tourgreece tour operating business units for an enterprise value of €54.5 million, subject to working capital adjustments at closing. On that basis, Transat has granted exclusivity to TUI AG. The contemplated transaction is subject to approval from anti-trust authorities and obtaining the advisory opinion of Transat's France Works Council (employees representatives), as mandated by French Law. Closing is expected to take place before October 31, 2016.

"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.

"I am very satisfied about the prospect of Transat France joining TUI. Transat France is an organization with many assets and talents that will further enhance the presence of TUI in France. The synergies created would be beneficial for TUI and our French customers. 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. TUI's trusted image, our power to continue investing in more innovation would enable us together to offer great value for money," noted Elie Bruyninckx, Managing Director of TUI Western Region.

Headquartered in Paris, Transat France is the fourth largest integrated tour operator in France, where it operates under the Vacances Transat and Look Voyages brands. Transat established itself as a tour operator in France in the early 80's, and acquired Look Voyages in 1996. Based in Athens, Tourgreece is an incoming tour operator. Together, Transat France and Tourgreece have 800 employees. Total sales represent approximately €450 million.

The proposed transaction would have no impact on Transat's transatlantic program, as well as on the operations, personnel, distribution network and growth strategy of air carrier Air Transat, another business unit of Transat, which operates a number of direct routes between Canada and some 30 European cities, as well as 30 sun destinations in Mexico and the Caribbean from Canada.

The company will not comment further on the proposed transaction, at least until it releases its quarterly results on June 9, 2016.

About Transat

Pre-transaction, Transat A.T. Inc. has annual revenues of 3.6 billion CAD and 3 million clients. A holiday travel specialist, it operates mainly in Canada and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin. Transat is also active in air transportation, accommodation, destination services and distribution. Transat is committed to sustainability in tourism. Headquartered in Montreal, Transat is listed on the Toronto Stock Exchange (TRZ).

About TUI AG

TUI Group is the world's number one integrated tourism group operating in around 180 destinations worldwide. The company is domiciled in Germany. The TUI Group's share is listed in the FTSE 100 index, the leading index of the London Stock Exchange and on the regulated market of the Frankfurt Stock Exchange. In financial year 2014/15, the TUI Group recorded turnover of €20.1bn and an operating result of €1.069bn. The Group employs 76,000 people in 130 countries. TUI offers its 30 million customers comprehensive services from a single source. It covers the entire touristic value chain under one roof. This comprises leading tour operator brands and 1,800 travel agencies in Europe, six European airlines with more than 130 medium and long-haul aircraft, more than 300 Group-owned hotels and resorts with premium brands such as RIU and Robinson. With cruise ships ranging from the MS Europa and MS Europa 2 luxury class vessels to the "Mein Schiff" fleet of TUI Cruises and the vessels of Thomson Cruises in the UK, TUI is also strongly positioned in the growing cruise sector. Global responsibility for sustainable economic, ecological and social activity is a key feature of TUI's corporate culture. TUI has joined the UN Global Compact and, as the only tourism group, it is listed in the renowned Dow Jones Sustainability Index (DJSI) Europe. Further information is available at www.tuigroup.com.  

Forward-looking statements

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release includes "forward-looking statements" that involve risks and uncertainties. All statements other than statements of historical facts included in this press release, including statements regarding the prospects of the industry and prospects, plans, financial position and business strategy of the Corporation, may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that would cause the Corporation's actual results to differ from current expectations, please also refer to the Corporation's public filings available at www.sedar.com and www.transat.com. In particular, further details and descriptions of these and other factors are disclosed in the Annual MD&A under the "Risks and uncertainties" section and in the "Risk factors" section of the Corporation's current Annual Information Form. The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.

SOURCE Transat A.T. Inc.

Source: Transat A.T. Inc. (www.transat.com); Media: Odette Trottier, Director of Communication, [email protected]; Financial analysts: Denis Pétrin, Vice-President Finance and Administration and Chief Financial Officer, [email protected]