A major financial movement sees Certares acquiring a leading travel enterprise, FTI Group, signalling significant change.
- US private equity firm Certares now owns FTI Group, Europe’s third-largest tour operator, expanding its global reach.
- The acquisition aligns with a €125 million investment to enhance growth and digital transformation at FTI Group.
- FTI Group’s 100% share capital was acquired for a symbolic €1, with the consortium assuming full control.
- Certares’s investment, amidst complex financial involvement, aims to boost FTI Group’s profitability and market position.
A significant development in the travel industry has occurred with US private equity firm Certares taking control of Germany’s FTI Group, the third largest tour operator in Europe. This acquisition marks a pivotal shift in the operational dynamics within the travel sector. Certares’s latest move represents a strategic acquisition in the European travel market, expanding its investment portfolio to include one of the largest players in the industry.
The agreement, which involves a €125 million investment, is aimed at facilitating the next phase of growth and supporting digital transformation within the FTI Group. This injection of funds is expected to enhance operational efficiencies and broaden the digital capabilities of the company, positioning it for future success in a competitive market.
FTI Group, based in Munich, encompasses a diverse array of 120 subsidiaries across German-speaking markets, the Netherlands, France, and other international destinations. Notably, FTI acquired the UK-based Youtravel in 2012, further extending its reach within the European travel landscape. The symbolic acquisition of FTI’s entire share capital for €1 underscores the strategic importance and potential long-term benefits envisioned by Certares and its partners.
Karl Markgraf, the Chief Executive of FTI, expressed optimism regarding the consortium’s involvement, highlighting Certares as a leading investor within the global travel and tourism sector. He emphasised the unique positioning of FTI for future growth and profitability, which he believes will benefit all stakeholders, including customers, commercial partners, and employees.
Under the umbrella of FTI, several brands such as FTI Touristik, 5vorFlug, Drive FTI, and Meeting Point International contribute to its diversified portfolio. Additionally, its hospitality segment, MP Hotels, further consolidates its dominance in the tourism sector. Around 10,000 partner agencies within Germany actively sell FTI products, showcasing its extensive market presence.
Headquartered in Munich, FTI Group employs over 11,000 individuals globally and reported consolidated sales of approximately €4.1 billion during the 2022-23 financial period, equalling its pre-Covid turnover. This financial resilience underlines its robustness in weathering economic challenges.
Certares, established in 2012, is exclusively focused on the travel and hospitality industries, managing assets worth $10.1 billion. The firm’s investment in FTI Group is part of a broader strategy to enhance its influence and holdings in the global travel sector. Certares also maintains stakes in several prominent travel and hospitality businesses, including G Adventures, Tripadvisor, and American Express Global Business Travel.
The investment deal, however, was not without complexities, involving significant financial actors such as FTI’s main bank, the Egyptian Sawiri family, and both the German federal government and the state of Bavaria. These entities provided crucial loans and credit guarantees via Germany’s Economic Stabilisation Fund, which played a vital role in FTI’s financial manoeuvres.
The acquisition by Certares is set to steer FTI Group towards enhanced growth and stability in the travel industry.
