Kunoi Group has sold all of its European tour operating businesses to Der Touristik, the travel division of German trade and tourism company, Rewe Group.
Kuoni said all of its tour operators, specialists and travel agencies run by the Group’s units in Switzerland, the UK, Scandinavia/Finland and Benelux were being taken over.
This includes the main Kuoni tour operating brand, its 34 Kuoni-branded travel shops and John Lewis concessions as well as specialist travel businesses Carrier, CV Villas, Kirker and Voyage Jules Verne.
It also includes all of the 2,350 employees, as well as the offices, but the new owners have insisted that “businesses activities are being continued”.
Peter Meier, chief executive of the Kuoni Group, said: “The successful sale of our European tour operating activities marks a significant milestone in the development of the Kuoni Group.
“European tour operating has been closely associated with the Kuoni name for more than 100 years. Our tour operating businesses and all their brands are now being taken over by the Rewe Group and its experienced Der Touristik travel division, which will integrate them into its growth strategy. I am pleased that with this sale we have found an ideal, forward-looking, long-term solution for our customers and employees”.
Heinz Karrer, chairman of the board of directors of the Kuoni Group added: “With the sale of the entire European tour operating business we can complete the new strategic direction of the Kuoni Group more quickly than planned.
UK managing director Derek Jones welcomed the news, insisting that the Kuoni brand would “continue to thrive in the UK market under new ownership”.
The deal will also see Der Touristik acquiring the airline Novair and the Playitas family and sports resort on Fuerteventura.
No detail has been given on the purchase price or contract details.
The acquisition is subject to the approval by the relevant competition authorities in the EU and Switzerland.
The transaction is expected to be completed in the third quarter of 2015.
DER Touristik said the acquisition meant it was positioning itself as a “leading pan-European travel company”.
The tour operating activities will continue to trade under their existing brands. Rewe Group is acquiring the right to use the Kuoni brand in Switzerland and the UK, while Kuoni Group remains the owner of the Kuoni brand.
Meanwhile, Kuoni Group said it was continuing to search for a buyer for the remaining tour operating activities in India and Hong Kong/China during the course of this year.
Kuoni also said the sale of its European tour operating activities was likely to impact the half-year results of discontinued operations in the range of £123 million.
