Saudi’s Al Tayyar purchases UK travel firm CTM for £13.5 million
Saudi Arabia’s Al Tayyar Travel Group said yesterday that it had acquired the British travel and tourism company CTM in deal worth £13.5 million (Dh82.8m), as it seeks to expand in Europe.
Following the acquisition of Thomas Cook’s luxury travel tour operating entity earlier this year, Al Tayyar said it closed its latest acquisition on Tuesday.
The deal was between Al Tayyar Travel Group Mawasem Travel and Tourism Company and the owners of CTM, Al Tayyar said in a statement.
The financial revenues from the acquisition are expected to be announced in the third quarter of this year, according to the statement.
Based in the UK, CTM provides rail, road and air transportation services. The company is also involved in conferences management and hotel services.
“With this acquisition, Al Tayyar Travel Group aims at expanding the scope of its business in EU countries to provide distinguished services to the clients travelling to the region,” Al Tayyar said.
CTM generated £130m in sales last year. It has 207 employees across 15 branches in the UK and Ireland.
“With our recent acquisition of Thomas Cook’s UK luxury travel tour operating entity, Elegant Resorts, earlier this year and this addition to business in the EU markets, we have a greater opportunity to accelerate the current momentum across the travel industry, provide distinguished services for our customers an magnify returns for all stakeholders,” said Nasser Al Tayyar, the deputy chairman of Al Tayyar Travel Group.
The deal is the latest in a series of Arabian Gulf acquisitions of international travel businesses. In February, Emirates-owned dnata bought Gold Medal Travel Group – part of Thomas Cook – for £45m.
“This is a good acquisition as it will deliver amplified vertical efficiencies for Al Tayyar Group, and this should enhance the group’s value proposition to its varied customer base,” said Gaurav Sinha, the founder and chief exectutive of the brands agency Insignia.
“The Middle East is a key feeder market to Europe and UK and if this broadened relevance allows customers to benefit from more value-driven business then it’s clearly good for the market.”
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Published: May 29, 2014 04:00 AM