India’s Mahindra Holidays & Resorts has signed an agreement to acquire a stake in Finland’s Holiday Club Resorts Oy.
The deal will see Mahindra take an 18.8% stake in the Helsinki-based company, with the right to increase its ownership over a period of two years. The acquisition is still subject to regulatory approvals, but is expected to close in a month’s time.
Holiday Club Resorts operates a portfolio of 32 resorts, 24 of which are located in Finland. These include five ‘Angry Birds Activity Parks’. The company has a membership base of 50,000 families.
Mahindra said the acquisition would allow it to make “significant inroads into the European market and to leverage Holiday Club’s expertise in the vacation ownership model”.
“The acquisition of Holiday Club Resorts will elevate Mahindra Holidays to a global leader in the vacation ownership industry,” said Anand Mahindra, chairman of the Mahindra Group.
“This timely acquisition not only provides access to European assets, technology and processes, but more importantly, provides a springboard to Mahindra Holidays for growth in Europe and other international destinations.”
Vesa Tengman, CEO Holiday Club, said he is “excited about the various development opportunities” offered by the partnership.
Mahindra currently has 171,000 vacation ownership members and operates 41 resorts across India and overseas.