| Journal: TWUK | Section: |
| Title: | Issue Date: 12/06/00 |
| Author: | Page Number: 4 |
| Copyright: Other |
Acquisition of UKTurkey specialist adds 25% to operator’s annual carryings
First Choice agrees £7 7m Ten Tour deal
Report by STEVEJONES
FIRST Choice is to continue buying specialist operators in Europe after completing a £77m deal for Turkish company Ten Tour.The acquisition gives the Crawley-based operator control of UK Turkey specialist Sunquest which Ten Tours bought in 1995.
Chief executive Peter Long said it would pursue the strategy of developing its niche business in favour of aligning with a mass-market western European operator. Deals in Spain and Italy are expected to follow.
“We’ve become interested in this model which is different from our competitors,” said Long.He said acquiring large mass-market players operating to Spain does not guaranteed benefits, particularly with the shortage of quality accommodation.
“Buying niche operators can also bring you scale,” added Long. “Ten Tour is niche but its combined operators carry around 1m passengers which is significant and adds around 25% to our annual carryings.
“Its French operator is in the top five in the country and is market leader to Turkey, Egypt and Tunisia and the number two operator to Morocco.”
The French operation accounts for around half of Ten Tour’s 1m passengers and was one of the major reasons behind the acquisition.
Ten Tour also has operations in Belgium, Germany, Austria and Spain. All are specialists to Turkey and north Africa.
Long dismissed suggestions that investing in Turkey specialists was a risky strategy. The group saw profits fall to £3.7m last year amid terrorist threats and earthquakes in Turkey.
“Analysts are predicting profits of around £6m-£7m next year,” said Long. “Turkey has enjoyed many successful years and the terrorist threat has now subsided.”
The deal for Ten Tour, to be funded in cash and shares, took four months to complete and follows First Choice’s tie-up with Royal Caribbean last month.
Progress:Peter Long, chief executive, left, and David Howell, group finance director are keen to develop niche businesses
What First Choice has bought
n Sunquest – Turkey specialist. Carryings: 60,000.
n Marmara – market leading tour operator to Turkey from France, and Etapes Nouvelles – market leader to Egypt and Tunisia from France and number two to Morocco. Combined carryings: 500,000.
n Nazar – number two operator to Turkey from Germany and third largest to Egypt. Carryings: 285,000.
n Taurus – number two operator to Turkey from Austria, also offers Greece Tunisia and Egypt. Carryings: 80,000.
n Bosphorus – Belgium-based tour operator which offers Turkey, Tunisia, Morocco and Egypt. Carryings: 70,000.
n Royal Vacaciones – offers Turkey, Tunisia, Egypt and Morocco. Carryings: 40,000.