TUI Sells Adventure-Travel Unit to KKR in Shift to Mass Market
- Private-equity firm to buy Travelopia for 381 million euros
- Tour operator’s stock gains most in seven months in London
TUI AG took another step toward sharpening focus on mass-market hotel and cruise brands with the disposal of its adventure-travel unit as Europe’s largest tour operator spelled out a strategy to attract new customers from markets like southern Europe and China. The stock rose to a 13-month high.
TUI agreed to sell Travelopia to private-equity firm KKR & Co. for an enterprise value of 381 million euros ($404 million). The company outlined an expansion target Tuesday for countries such as Spain, Portugal and China to add 1 million customers and 1 billion euros to annual revenue by 2022. TUI shares jumped as much as 6.1 percent to 1,227 pence, the highest intraday price since Jan. 25, 2016, and were trading up 5.5 percent as of 1:08 p.m. in London.