Air Canada To Buy Tour Operator Transat
Air Canada said it has entered exclusive talks to acquire Canadian tour company Transat in a deal valued at CAD$520 million (USD$386 million).
The all-cash deal worth C$13 per share “will create a Montreal-based global travel services company in leisure, tourism and travel distribution operating across Canada and internationally.”
Air Canada said it has the necessary funding to complete the transaction, which is not subject to financing conditions.
The transaction is subject to final agreements, due diligence, and regulatory and shareholder approvals.
“A combination with Transat represents a great opportunity for stakeholders of both companies,” the airline’s chief executive Calin Rovinescu said. “The acquisition presents a unique opportunity to compete with the very best in the world when it comes to leisure travel.
“It will also allow us to further grow our hub at Montréal-Trudeau Airport, where we have added 35 new routes since 2012 to the benefit of the Montréal and Québec communities, and from which we carried 10 million customers in 2018 alone.”
Transat CEO Jean-Marc Eustache said the announcement is good news for the company. "This is an opportunity to team up with a great company that knows and understands our industry and has had undisputable success in the travel business.
“This represents the best prospect for not only maintaining, but growing over the long term the business and jobs that Transat has been developing in Québec and elsewhere for more than 30 years,” Eustache added.
Transat said its operations will continue normally during the exclusive discussions, with no changes for its clients, suppliers and employees.