Flight Centre completes Canadian purchase
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Travel retailer Flight Centre has bought a remaining stake in Canada-based corporate travel business Les Voyages Laurier du Vallon to take sole ownership of the travel business.
The ASX-listed travel firm bought 75 percent of Quebec-based LDV in 2017 for an undisclosed sum and has now exercised its option to buy the remainder.
“LDV has proven to be a valuable addition to our network in the Americas and we are pleased to take 100 percent ownership of the business,” said Graham Turner, Flight Centre managing director.
“In addition to delivering solid earnings growth over the past two years, its corporate travel presence has enhanced our already strong customer offering across Canada and throughout North America in general.”
Flight Centre has already flagged a record profit contribution of more than $100 million from its North American business when it releases its full-year accounts on August 22.
Shares in Flight Centre were worth $45.68 before the start of trade on Monday, up 6.4 percent this calendar year.
Questions & Answers
Q.What percentage of Les Voyages Laurier du Vallon did Flight Centre initially acquire and when?
What percentage of Les Voyages Laurier du Vallon did Flight Centre initially acquire and when?
Flight Centre first bought 75 percent of the Quebec-based corporate travel business Les Voyages Laurier du Vallon in 2017. They have now exercised their option to buy the remaining stake.
Q.What is the primary reason Flight Centre Managing Director Graham Turner gives for taking full ownership?
What is the primary reason Flight Centre Managing Director Graham Turner gives for taking full ownership?
Graham Turner stated that Les Voyages Laurier du Vallon has been a valuable addition to their network, delivering solid earnings growth and enhancing their corporate travel offering across North America.
Q.What financial contribution is Flight Centre expecting from its North American business this year?
What financial contribution is Flight Centre expecting from its North American business this year?
Flight Centre has indicated that its North American business is expected to contribute a record profit of more than $100 million. Full-year accounts will be released on August 22.
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