Red Label Vacations Inc. which operates redtag.ca, itravel2000.com, The Travel Experts and TravelBrands, has signed an agreement to be acquired by a subsidiary of H.I.S. Group, a global travel services company based in Japan.
Under the terms of the agreement, Red Label Vacations will continue to operate as an independent, wholly-owned subsidiary of H.I.S. Completion of the transaction is subject to customary closing conditions, including approval by the Canadian Competition Bureau.
Subject to the satisfaction of all necessary conditions, the transaction is expected to be completed in the first calendar quarter of 2019.
“It is a very exciting day for our company as this marks the launch of our next phase of growth,” said co-owners Frank DeMarinis, Joe DeMarinis, and Enzo DeMarinis. “H.I.S. is committed to supporting our continued growth at home in Canada as well as internationally. We expect that H.I.S.’s support will enable us to enhance our service offerings on both the wholesale and retail fronts and accelerate our growth objectives. We look forward to a very bright future.”
The Red Label deal marks the latest acquisition of a Canadian travel business by H.I.S; in 2017, Transat sold its Jonview Canada division to H.I.S. in a $44 million deal. In 2016, the company also entered into an investment agreement with Merit Travel Group.
Hideo Hatano, executive officer, Global Business Development Division, H.I.S. Co. Ltd., added: "The acquisition of Red Label Vacations is in keeping with our ambitious expansion plan in North America and we look forward to building upon Red Label Vacation’s branding and experience in the Canadian market space to further service the North American market."