The FTI Group, Europe’s third largest travel group, is getting a new owner and with it fresh capital. The US investor Certares is taking over the company, which was in crisis during the pandemic, for a symbolic euro.
The financially troubled tourism company FTI is changing hands and is to receive fresh capital. A consortium led by the US financial investor Certares is taking over the third largest European travel group for a symbolic euro. The new owners are also providing the Munich-based company with 125 million euros for investments, as FTI explained. The competition authorities still have to approve the deal.
Previous Majority owner remains involved
Certares is supporting growth as a leading investor in the global tourism industry, it said. “We are determined to begin our next chapter of success and further consolidate our position as a leading player in the German and European tourism sector,” said FTI boss Karl Markgraf. “With the support of Certares and its extensive experience in this sector, as well as the capital provided by the consortium, FTI is in a unique position for future growth and profitability.”
The previous majority owner, the Sawiris family of entrepreneurs from Egypt, is involved in the consortium and is prepared to make further investments, FTI explained. Certares is no stranger to Germany: The US investor was interested in the Italian airline ITA before Lufthansa won the contract.
Saved from bankruptcy during the pandemic
The FTI Group, with around 11,000 employees, received aid from the state during the corona pandemic, which plunged the entire travel industry into a serious crisis, and was saved from bankruptcy with almost 600 million euros in financial aid. As the “Handelsblatt” reported last week, only a small part of this has been repaid. Negotiations are to take place with the federal government and the EU Commission about a haircut. FTI declined to comment.
The travel group recently embarked on a growth path again thanks to increased demand. In the last financial year 2022/2023, the company recorded a ten percent increase in sales to 4.1 billion euros and generated earnings in the double-digit million range. The company did not provide further details about the result.