Kuoni Group, a Swiss tourism company, has agreed to sell its entire European tour operating business to German-based REWE Group.

REWE Group is acquiring the right to use the Kuoni brand in Switzerland and the UK, while Kuoni Group remains the owner of the Kuoni brand.

Under the agreement, the group's travel division DER Touristik will acquire all the tour operators, specialists, travel agencies and online sales in the Switzerland, UK, Scandinavia/Finland and Benelux markets, as well as the airline Novair and the Playitas family and sports resort on Fuerteventura, making it a leading pan-European travel company.

REWE Group is acquiring all of the approximately 2 350 (FTE) employees at the existing locations and will continue to run the business activities, including all the travel agencies, as part of its DER Touristik travel division.

The tour operating activities will continue to trade under their existing brands

Kuoni Group announced in January 2015 that it would be concentrating on its core business as a service provider to the global travel industry and governments. This new strategic direction is turning Kuoni into a focused, clearly positioned global service provider with attractive growth prospects. It has no pre-purchased flight capacities or hotel rooms, which significantly improves the risk profile of the Kuoni Group.

Heinz Karrer, chairman of the board of directors of the Kuoni Group, said: "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."

"The successful sale of our European tour operating activities marks a significant milestone in the development of the Kuoni Group. European tour operating has been closely associated with the Kuoni name for more than 100 years. I am pleased that with this sale we have found an ideal, forward-looking, long-term solution for our customers and employees," said Peter Meier, CEO of the Kuoni Group.

The two parties have agreed not to disclose the purchase price or contract details. The acquisition is subject to the approval by the relevant competition authorities in the European Union and Switzerland, the group said, adding that it expects to close the transaction in the thrid quarter of the year.  – TradeArabia News Service