Transat A.T.

Transat A.T. Inc.
Company typePublic
TSX: TRZ
IndustryTour operator
FoundedMontreal, Quebec (1987)
HeadquartersMontreal, Quebec
Key people
Annick Guérard - President and Chief Executive Officer
ProductsOutgoing tour operating, Incoming tour operating and destination services, retail distribution, air transportation, and hotels
Revenue$3.5 billion CAD for Fiscal 2009
Number of employees
5,000 (2019)[1]
Websitewww.transat.com

Transat A.T. Inc. is an international, vertically integrated tour operator with nearly 20 business units in 8 countries. The company is headquartered in Montreal, Quebec, Canada.[2]

In May 2021, Jean-Marc Eustache, then CEO and one of the principal founders of the company, announced he would retire, with Annick Guerard (previously COO) becoming president and CEO effective May 27, 2021.[3]

History

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Transat was founded in the early 1980s by Jean-Marc Eustache, Lina De Cesare and Philippe Sureau as 'Trafic Voyages. The company was a wholesaler specializing in travel from Québec to France.[4]

In 1987, the company, which had been renamed Transat, was listed on the stock exchange through an initial public offering that generated $8.25 million. The company used the proceeds to establish its own airline, Air Transat, and to embark into a series of acquisitions in order to solidify its position as an outgoing tour operator in Canada and France, as well as to develop new destination markets.[4]

In 1988, Transat expanded its presence in retail distribution considerably with the acquisition of an interest in the franchisor Consultour.

The company had broken into the French market very early on with Vacances Transat (France), the largest tour operator offering travel to Canada, and soon expanded within France, the United Kingdom and the rest of Europe. It acquired French tour operator Look Voyages in 1996, Greek incoming tour operator Tourgreece in 2001, British tour operator Canadian Affair in 2006, and French tour operator Amplitude Internationale (today Amplitravel), which specializes in travel to Tunisia, in 2007. At its destinations, the company opened offices in Mexico, the Dominican Republic and Florida in order to be able to provide its customers with complementary services. In 2007, Transat created a five hotel, 1,600-room joint venture with the major Spanish chain H10 Hotels in Mexico and the Dominican Republic. In 2010, Transat became an outgoing tour operator in Mexico, when it founded Eleva Travel.[4]

In Canada, Transat has nearly 600 travel agencies[when?] and is the largest travel agency network since the acquisition of the Thomas Cook agencies in 2006. Brands include Club Voyages, Voyages en Liberté, Marlin Travel, and TravelPlus.

With thousands of tourism service providers in some 60 countries (including about 50 airlines and 1,500 hotels) and more than 5,000 employees catering to the approximately 3 million people who travel every year, Transat is one of the leaders in the international tourism industry.[when?][4]

In 2012, Transat A.T. sold its Handlex business unit, which provides airport ground-handling services at Montreal, Toronto and Vancouver international airports. Handlex was acquired by Servisair Holding Canada Inc, which is now fully integrated to Swissport.[5]

Proposed acquisition by Air Canada

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On 16 May 2019, Transat AT Inc. announced it was in exclusive talks for 30 days with Air Canada which intended to purchase the company. An offer was subsequently made by Air Canada at C$13 per share and another company, Group Mach, proposed a purchase at C$14.

On 27 June 2019, the Board of Transat AT accepted Air Canada's all-cash bid of C$520 million and did not comment on the C$527.6 proposal from Group Mach because the talks with Air Canada were still exclusive. The deal required approval by two-thirds of shareholders; some major investors, and some financial analysts, stated that the offer is below the true value of the company. Regulatory and governmental approval would be required for sale of Transat AT. A May report by CBC News stated that "regulatory approvals are no sure thing".[6] If the Air Canada purchase is concluded, Air Transat would continue to operate as a separate brand.[7][8][9]

In late August 2019, 94.77% of shareholders voted in favour of accepting Air Canada's final offer of $18-per-share, a $720 million deal. The plan was "expected to face intense scrutiny from the Competition Bureau and other regulatory authorities, including in Europe", according to CBC News.[10]

In October 2020, the sale price for Transat AT was reduced from C$18 to C$5 per share.[11] The closing of the deal is expected for early 2021. In February 2021, the federal government has approved the 190 million deal (or $5/share). The impact of the COVID-19 pandemic prompted a revision of the deal as well as a decision factor for the Canadian government to approve the merger.[12][13]

This proposed acquisition by Air Canada has been terminated upon mutual agreement on April 2, 2021, after having been advised by the European Commission that it would not approve the transaction.[14][15]

Operating divisions

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Transat A.T., through its business units, is active in five business segments:[16]

See also

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References

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  1. ^ "About Transat A.T. Inc".
  2. ^ "Contact Us." Transat A.T. Inc. Retrieved on May 20, 2009.
  3. ^ "Transat CEO Jean-Marc Eustache to retire".
  4. ^ a b c d "History of Transat A.T. Inc". Retrieved 2012-06-27.
  5. ^ Transat A.T. inc. concludes the sale of its Handlex business unit
  6. ^ "Air Canada in exclusive talks to buy Air Transat". CBC News. 16 May 2019. Retrieved 28 June 2019. The exclusivity agreement also states that if Transat walks away from the deal for a better offer, it would pay Air Canada a $15-million break fee. In the event the agreement is terminated because regulatory or governmental approvals are not obtained, Air Canada would pay Transat a $40-million break fee.
  7. ^ "Air Canada to buy Transat in deal valued at $520M". CTV News. 27 June 2019. Retrieved 28 June 2019. Letko, Brosseau and Associates and PenderFund Capital Management, which jointly own a 22.06 per cent stake, have said they would vote against the agreement if the purchase price remained at $13 per share.
  8. ^ "Transat agrees to Air Canada's $13-a-share takeover offer, despite other bids". CBC News. 27 June 2019. Retrieved 29 June 2019. Shareholders will have to weigh in and regulatory agencies will have a say, as the move would consolidate Canada's airline industry in even fewer hands.
  9. ^ Lampert, Allison (27 June 2019). "Transat accepts Air Canada's $520-million buyout offer". Financial Post. Retrieved 28 June 2019. The deal, which would keep Transat's head office and key functions in Montreal, is expected to be completed early next year, subject to regulatory approval.
  10. ^ https://www.cbc.ca/news/canada/montreal/air-transat-shareholders-approve-sale-air-canada-1.5257276, Transat shareholders approve Air Canada takeover, deal now in regulators' hands
  11. ^ "Air Canada and Transat A.T. Inc. Conclude amended transaction for combination of the two companies". 10 October 2020.
  12. ^ Zimonjic, Peter; Burke, Ashley (11 February 2021). "Federal government approves Air Canada purchase of Transat A.T. Inc". CBC/Radio-Canada. CBC News. Retrieved 13 February 2021.
  13. ^ Marowits, Ross (11 February 2021). "Ottawa approves Air Canada's $190-million Transat purchase". Bell Media. CP24. Retrieved 13 February 2021.
  14. ^ "The parties having concluded that European Commission approval would not be obtained - The Arrangement Agreement between Transat and Air Canada is Terminated by Mutual Consent". Transat. Retrieved 2021-05-28.
  15. ^ "Air Canada Drops Transat Takeover After Battle With Europe". Bloomberg.com. 2021-04-02. Retrieved 2021-04-03.
  16. ^ Transat A.T. - Segments, business units and products
  17. ^ Transat A.T. - Air transportation
  18. ^ Transat A.T. - Outgoing tour operators
  19. ^ Transat A.T. - Transat launches new product line in Ontario
  20. ^ Transat A.T. - Retail distribution
  21. ^ Transat A.T. - Incoming tour operators and destination services
  22. ^ Transat A.T. - Hotels
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