I wonder what the mood is like in globespan towers this afternoon!
July 14, 2006
Transat A.T. Inc. acquires British tour operator Canadian Affair
Transat has signed an agreement that will lead to Transat acquiring all of the shares of British tour operator The Airline Seat Company (TASC), which operates under the Canadian Affair brand, for ₤20.4 million in cash (approximately C$42.8 million). Closing is expected to take place at the end of this month.
Transat, which already sells a significant number of seats between Canada and the U.K., thus becomes a tour operator in Canada's largest tourism market in Europe. This acquisition squares perfectly with the strategic plan we adopted in 2005 that states our intention to expand the scope of Transat as an outgoing tour operator in Europe, building on our already significant position in France.
In addition, TASC is very strong on direct sales to the consumer, which represent the fastest growing market segment in the U.K. This considerably enhances the strategic value of this acquisition by reinforcing the full-fledged multi-channel distribution system we are building in the U.K. More than 80% of TASC's sales are direct to the consumer, of which more than 50% are made online.
The sale to Transat represents the next stage in TASC's long-term growth strategy and provides substantial synergies between the two companies. Established in 1995, TASC is one of the largest British tour operators specializing on U.K.-Canada routes, with annual sales of approximately ₤75 million (approximately C$155 million). Its head office is in London and it has offices in Glasgow (Scotland) and Vancouver (Canada). TASC has more than 60 employees. It serves seven Canadian destinations. In 2004 and 2005, TASC was recognized by the Canadian Tourism Commission as the best direct sale tour operator in the U.K.