Businessman Denis O’Brien has acquired debt associated with it
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TUI Travel has entered an agreement to acquire Magic Life club’s six operating companies for €6, or €1 each. A further €1 is to change hands for trademarks and related rights.
The company will assume the debts of the six firms, which total €10.5m.
Magic Life leases and manages 13 holiday clubs in Turkey, Tunisia, Egypt, Greece and Spain through the separate operating companies.
TUI said the deal represents an “important strategic step for the group in securing the supply of an attractive, differentiated high quality hotel club product”.
It expects the transaction to have a positive impact on underlying operating profit in the second half of 2011.
Magic Life was founded in the early 1990s to provide an all-inclusive holiday product to the Austrian and German markets. It is currently owned by TUI AG.
Last year, the firm recorded an operating loss of €22.6m. However, as at October 2010, it had gross assets of €46.4m and net assets of €6.6m.