Major German department store chain Galeria Karstadt Kaufhof has sold its travel agency division to German motoring association ADAC.
An agreement has been reached and the transaction will take effect in October, Galeria and ADAC announced simultaneously in Frankfurt on Wednesday.
The ADAC is Germany’s largest automobile association and offers a range of services including breakdown assistance, trip planning and insurance, and stands up for the rights of motorists.
The deal concerns 70 Galeria travel agencies and reportedly means that ADAC will increase the number of travel agencies to more than 240.
The purchase price for the entire transaction has not been disclosed. The property is expected to continue as Galeria Travel Agency, with the addition of ADAC branding.
“We are very pleased to be able to further expand our market position,” said Andreas Hartel of ADAC.
The company, he said, was pleased that more than 280 experienced, dedicated 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 CEO Oliver van den Bossche also struck a positive note. “We can now focus on our core competence of department stores with our strong product ranges, while retaining the expertise and frequency of Galeria travel agency customers in our stores.”
The contract closing is “the starting signal for many more strong partnerships for Galeria,” he said.
The department store chain Galeria is in a serious crisis, including bankruptcy proceedings. On August 1, the American investment company NRDC and a holding company of entrepreneur Bernd Beetz will become the new owners.
The number of stores must be reduced from 92 to 83 by September.
