Travel conglomerate Holidaybreak has bought a 50 percent stake in German educational accommodation provider, Meininger, for €36.5m, with the option to buy the remaining stake within three years.
The UK travel company said the acquisition between would boost the education travel division of its PGL brand, as well as allow the German group to provide student tours.
The announcement came as Holidaybreak on Tuesday reported strong full-year results on the back of a healthy in study-based tours.
Pre-tax profit rose fivefold from £5.2m to £26m, despite a 2.5 percent fall in revenues to £461.7m for the 12 months ending 30 September.
Martin Davies, chief executive, said: “[The acquisition] will contribute [to earnings] by moving out the business into an area where we have expertise and knowledge. It will be earnings-enhancing from day one.”
Over the past year, the group has opened new PGL centres at Liddington in Wiltshire and Windmill Hill, near Hailsham, East Sussex.
The groups’ first joint project will involve providing student tour packages in Paris.