BERLIN, April 28 (Reuters) - European tourism group TUI
TUIT.L has agreed a deal to sell its Hotelbeds unit to private
equity group Cinven CINV.UL and Canada Pension Plan Investment
Board for 1.191 billion euros ($1.35 billion) in cash, it said
on Thursday.
TUI put its Hotelbeds unit, which sells hotels rooms to
wholesale customers such as travel agencies and tour operators,
up for sale because it didn't fit with its other tour operating,
cruise and hotel businesses.
Hotelbeds reported turnover of 1.06 billion euros and
underlying EBITA of 69 million in the year to end September
2015.
The proceeds will be used to invest in further growth and
strengthen TUI's balance sheet, it said, adding the transaction
is expected to complete by the end of September.
London-listed TUI is due to give a half-year trading update
on May 11.
($1 = 0.8823 euros)