Club Med Slims Down, Gets Back to Basics
PARIS ~ French leisure group Club Med said this week it had sold its tour operating unit Jet Tours and most of its gyms, two moves allowing it to re-focus on vacation villages, its core business.
The sale of Jet Tours to Thomas Cook and its Club Med Gym network to the investment fund 21 Centrale Partners would earn it 100 million euros (US$157 million), Club Med said.
Group chairman Henri Giscard d’Estaing said the sales would give the company “additional means” to prepare its “future growth.”
They should also enable Club Med to compensate for declining real estate values, which last year contributed to an overall net loss of 8 million euros.
Analyst Annick Thevenon of CM-CIC Securities said the 100 million euros earned by the sale would help Club Med “reinforce its financial structure.”
At Raymond James Euro Equities analysts said the sale of Jet Tours would “strengthen Club Med’s partnership” with Thomas Cook and “speed up its medium- and long-term development.”
Added a key shareholder: “Thanks to these two positive steps, Club Med will be able to re-inject fresh money into its tourist villages.”Filed under: Travel & Culture