TUI AG: TUI Cruises to acquire Hapag-Lloyd Cruises for an enterprise value of ?1.2 billion (970425)

 
 TUI AG (TUI) 
TUI AG: TUI Cruises to acquire Hapag-Lloyd Cruises for an enterprise value 
of &euro1.2 billion 
 
07-Feb-2020 / 08:49 CET/CEST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
TUI AG has reached an agreement today to contribute its 100% subsidiary 
Hapag-Lloyd Cruises into TUI Cruises, a 50:50 joint venture owned by TUI AG 
and Royal Caribbean Cruises, valuing it at &euro1.2bn on a debt and cash 
free basis, with an expected net cash consideration of approximately 
&euro700m (including an earn-out element of &euro63m, payable upon Hapag- 
Lloyd Cruises delivering its FY 2020 budget EBIT) (the 'Transaction'). The 
Transaction is expected to generate a considerable book gain and is still 
subject to customary closing conditions and certain regulatory approvals and 
is expected to complete in summer 2020. 
 
With the Transaction, TUI and Royal Caribbean Cruises Ltd. have agreed to 
further expand their partnership by using the proven joint venture structure 
of TUI Cruises also for the luxury and expedition cruise segment. The 
partnership combines the shipbuilding, operational and digital expertise of 
Royal Caribbean and the strong brand and distribution power of TUI. The 
Transaction is in line with TUI's previously stated objective to deliver 
additional profitable growth at a lower level of capital intensity. 
 
Hapag-Lloyd Cruises is part of the TUI Group's cruise businesses and is the 
leading provider of luxury and expedition cruises in German-speaking 
markets. Its fleet currently consists of two luxury ships within the five 
star plus category and three expedition cruise ships. A further expedition 
cruise ship has been ordered and will be added to Hapag-Lloyd Cruises' fleet 
in 2021 to replace Bremen. In light of the Transaction it is anticipated the 
luxury and expedition fleet will grow in the coming years, as it is expected 
that the demand for luxury and expedition cruises will continue to grow. 
 
In the financial year ended 30 September 2019, Hapag-Lloyd Cruises generated 
a total revenue of &euro305m, an underlying EBITA of &euro43m and reported 
gross assets at 30 September 2019 of &euro660m. During 2019 Hapag-Lloyd took 
delivery of two industry leading expedition vessels, Hanseatic Nature (May 
2019) and Hanseatic Inspiration (October 2019), setting the stage for 
growth. Excluding synergies, fiscal year 2020 is expected to deliver EBITDA 
of &euro90m. Going forward Hapag-Lloyd Cruises will be part of the TUI 
Cruises joint venture and further support the growth of TUI Group Cruises 
segment. As we continue with our announced accelerated strategic growth and 
digital transformation initiatives, we will use the proceeds according to 
TUI's Capital Allocation framework and to strengthen the Group's balance 
sheet. 
 
*ANALYST & INVESTOR ENQUIRIES* 
 
Mathias Kiep, Group Director     Tel: +44 (0)1293 645 925/ 
Investor Relations               +49 (0)511 566 1425 
and Corporate Finance 
 
Nicola Gehrt, Director, Head of  Tel: +49 (0)511 566 1435 
Group Investor Relations 
*Contacts for Analysts and Investors in UK, Ireland and 
Americas* 
Hazel Chung, Senior Investor     Tel: +44 (0)1293 645 823 
Relations Manager 
Corvin Martens, Senior Investor  Tel: +49 (0)170 566 2321 
Relations Manager 
*Contacts for Analysts and Investors in Continental Europe, 
Middle East and Asia* 
Ina Klose, Senior Investor       Tel: +49 (0)511 566 1318 
Relations Manager 
*Media* 
Kuzey Alexander Esener, Head of  Tel: +49 (0)511 566 6024 
Media Relations 
 
ISIN:           DE000TUAG000 
Category Code:  MSCU 
TIDM:           TUI 
LEI Code:       529900SL2WSPV293B552 
OAM Categories: 2.2. Inside information 
Sequence No.:   45325 
EQS News ID:    970425 
 
End of Announcement EQS News Service
(END) Dow Jones Newswires
February 07, 2020 02:49 ET (07:49 GMT)
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