Acquisition of Russia-based UTE Megapolus Group concluded Print page

August 31, 2007

Following approval of the transaction by the Russian competition authorities, Kuoni Travel Holding Ltd. formally acquired a majority shareholding in Russia-based tour operator UTE Megapolus today. Kuoni has acquired 80% of share capital under the transaction; the remaining 20% remain in the possession of the company’s founding shareholders.

UTE Megapolus specialises in providing high-quality leisure travel products for a more affluent clientele. Its product portfolio includes ski vacations in the Alpine region, beach holidays in Greece and Croatia, and India and China travel itineraries. The Moscow-based company has four sales outlets in the capital and one in Nizhny Novgorod, and generated total turnover of CHF 51 million last year with a workforce of around 200 personnel.

“I am delighted that we have now received formal approval of our acquisition from the Russian competition authorities,” says Armin Meier, CEO of the Kuoni Group. “The Russian tour operating market has seen annual growth of 10 to 15 per cent in the last few years. And it has massive further potential, especially in the field of providing high-quality travel products for more affluent customers. Our acquisition also fits exactly into our strategy of achieving further business growth in expanding markets and the specialist segment.”

UTE Megapolus has won several awards within the Russian leisure travel sector for its branding and the high quality of its services over the past few years. The company distributes its products via its own sales offices and through independent travel agencies.

Eduard Kuznetsov, the company’s founder and former majority shareholder, will remain as CEO. He will report to Fons Brusselmans, Head of Business Unit Spirit, within the Kuoni organisation. All the present UTE Megapolus employees will also be retained. The parties agreed not to divulge the purchase price involved.