The major German department store chain Galeria Karstadt Kaufhof has sold its travel agency division to Germany’s ADAC motorist club.
An agreement has been concluded, and the transaction will take effect in October, Galeria announced in Essen and ADAC simultaneously in Frankfurt on Wednesday.
The ADAC is Germany’s largest automobile association, providing a range of services including roadside assistance, travel planning and insurance, and advocacy for motorists’ rights.
The deal involves 70 Galeria travel agencies and will mean ADAC will reportedly increase the number of its travel agencies to more than 240.
The purchase price for the entire transaction was not disclosed. In appearance, the premises will continue as Galeria travel agencies, supplemented by ADAC branding.
“We are very pleased to further expand our market position,” said ADAC’s Andreas Hartel.
The company, he said, was delighted that more than 280 experienced, committed and highly professional travel consultants would be joining ADAC. “Thanks to them, all Galeria and ADAC travel customers can be served even better and more personally.”
Galeria chief executive Oliver van den Bossche also struck a positive note. “We can now concentrate on our core competence of department stores with our strong product ranges and at the same time retain the expertise and frequency of the customers of the Galeria travel agencies in our stores.”
The conclusion of the contract is “the starting signal for many more strong partnerships for Galeria,” he said.
The Galeria department store chain has been through a serious crisis, including insolvency proceedings, and on August 1 the US investment company NRDC and a holding company owned by entrepreneur Bernd Beetz are set to become its new owners.
The number of stores is to be reduced from 92 to 83 by September.
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