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Sunwing Travel Group and TUI Travel PLC have agreed to a proposed strategic venture with their respective Canadian tour operations and retail divisions. The venture will see an amalgamation of tour operator Sunwing Vacations, a wholly owned subsidiary of the Sunwing Travel Group, and First Choice Canada's tour operator Signature Vacations, along with retail division SellOffVacations.
Under the terms of the deal, TUI Travel PLC will contribute its Canadian operations plus $101 million and Sunwing Travel Group will contribute Sunwing Vacations. In consideration, TUI Travel PLC will receive a 25% voting interest and an overall 49% interest in the Sunwing Travel Group.
Stephen Hunter, currently chief operating officer of Sunwing, will take over as President and CEO of the Sunwing Travel Group while Colin Hunter will remain as Chairman of the Board.
Commenting, Stephen Hunter said, "As one of Canada's fastest growing companies with combined revenues of $900 million, along with the improved operational efficiencies, complementary product mix and a growing retail distribution, our business will be well positioned to continue the growth and profitability curve we have achieved over the years."
Over the last five years, the Sunwing Travel Group, owned and operated by the Hunter family of Toronto, has seen revenues increase from $30 million to $660 million. In a press release, the company says it has maintained 'underlining profitability throughout,'
