Kuoni Reisen Holding AG, the Swiss travel services company, agreed to sell its entire European tour operating business to Rewe Group’s DER Touristik.
The sale to the German company will cause a one-time negative effect of about 180 million Swiss francs ($196 million) in its first-half results from discontinued operations, Zurich-based Kuoni said in a statement on Monday, without disclosing financial terms. The European tour unit includes Switzerland, the U.K., Scandinavia, Finland and Benelux. Kuoni plans to find a buyer for the remaining tour operating businesses in India, Hong Kong and China this year.
Kuoni said in January it would sell the business, which generated sales of 2.2 billion francs last year, and focus on travel-services units where it holds leading market positions. Revenue at the units for sale fell 8 percent through May, the company said on June 11.
“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,” said Kuoni Chairman Heinz Karrer.
The acquisition by DER is subject to approval by competition authorities in the European Union and Switzerland, Kuoni said, adding it expects the transaction to be completed in the third quarter.