Holidaybreak, the company that sells Keycamp and Eurocamp holidays, has reportedly acquired a 50% stake in Meininger, the German travel firm. They paid £30.9 million (€36.5 million) for the holding and have the option to buy the rest of the shares within 3 years. The company says the merger will be with its subsidiary PGL Travel, helping the company expand its education travel division.

Chief executive Martin Davies, who is the former head of PGL Travel, said that education will be part of their strategy to take core skills to new European markets. This acquisition will provide earnings revenues by expanding the business into areas they have knowledge and expertise, he continued. This will enhance earnings from day one, he noted.

Davies also said that the tailored accommodation business model at PGL Travel is well suited to Meininger, which is popular for teachers searching for an appropriate student lodging location in European cities. The first project for the group will involve expanding tours into key cities like Amsterdam, Berlin, Paris and Milan.

This announcement comes as Holidaybreak announced full-year results – ending September 30. Profits rose from £2.6 million to £20.2 million for the year, while pretax profits increased from £5.2 million to £26 million. These healthy results are due to growing demand for educational tours. Chairman John Coleman said that the group has performed well amid the difficult economic environment. Visibility is still very high for their education businesses, even though the outlook for next year is still challenging, he added.

Holidaybreak also owns the travel brands Superbreak, djoser, weekendjeweg, and EXPLORE! In early Tuesday trading, the company’s share jumped 11p to 281p.