Viajes El Corte Inglés and Logitravel merge to create an agency of 3,500 million in revenue

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Jorge Aguilar

Madrid

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El Corte Inglés merges its travel division, ‘Travel El Corte Inglés‘, with Logitravel thus executing the second great merger of travel agencies this year, after the attack by Barceló and Globalia. As reported by the department store group, the resulting company “aspires to become a global benchmark in the travel sector” which had more than 3,500 million euros in revenue in 2019. In addition, the workforce exceeds 5,000 people, while the points of sale amount to more than 500 worldwide. The operation is still pending approval by the CNMC.

The coronavirus crisis dramatically transformed the situation of Viajes El Corte Inglés, which accounted for almost 20% of the income of its parent company. Thus, this division had revenues of 2,731 million euros in 2019. In 2020, the paralysis of the tourism sector reduced revenues by 89%, to 309.1 million euros, also being the only division that registered negative EBITDA during the last year. In fact, the group of department stores explained that the fall in tourism had a very negative effect on their turnover.

This new company will be led by Jorge Schoenenberger, which until now was the managing partner of tourism in Deloitte. Schoenenberger has 25 years of experience in the industry.

According to El Corte Inglés, the new company will cover both vacation and business trips, incentives, congresses and events and will have a strong presence in Spain, Portugal, France, Germany and Latin America. El Corte Inglés also highlights that the new society will be born without debt “And with a solid financial position”, at a time when the sector is in a delicate position due to the effects of the coronavirus.

Although percentages of the capital distribution are not specified, sources close to the operation explain to ABC that El Corte Inglés would keep 75% of the new company, while the remaining 25% would belong to Logitravel.

The new company would not exceed in revenue the merger carried out by Barceló and Globalia, the sum of which gave a total of 3,700 million euros. Although it should also be noted that this union also has many more employees –more than 6,000– and points of sale –more than 1,500–.

To undertake the operation, El Corte Inglés has counted as financial advisers with Deloitte and Banco Santander Investment Banking, while Logitravel has been advised by EY. As legal advisers, Cuatrecasas on behalf of El Corte Inglés and Baker & McKenzie on behalf of Logitravel have intervened.

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