Travel and lodging firm Viad to sell events unit for $535 million

By Abigail Summerville

NEW YORK (Reuters) - Travel and lodging operator Viad Corp on Monday agreed to sell its events and conferences business GES to private equity firm Truelink Capital for $535 million, according to a statement seen by Reuters.

The sale of GES would leave Viad with its attractions and hospitality unit Pursuit, allowing the company to focus on a business that operates lodges and tours for travelers in national parks and cities such as Vancouver, Reykjavik, Las Vegas and Chicago.

The Scottsdale, Arizona-based company, which is valued at $1.4 billion including debt, will rebrand as Pursuit and operate under the ticker "PRSU" on the New York Stock Exchange after the close of the deal, which is expected by the end of the year. David Barry, the current president of the Pursuit unit, will become the CEO of the rebranded company.

"We think the sale (of GES) will unlock our high-growth, high-return Pursuit business, allowing it to command a much higher trading multiple as a pure-play attractions and hospitality company that has strong growth prospects around the world," Barry said in an interview.

The move comes as the global tourism industry has expanded at a rapid pace after the pandemic, boosted by increased spending from consumers. A record $1 out of every $10 spent globally in 2024 will be on travel as people are booking more hotels, cruises and flights compared to previous years, according to an annual report by the World Travel and Tourism Council, a non-profit membership organization.

Pursuit operates 14 attractions and 27 lodges in the U.S., Canada and Iceland in destinations including the Banff National Park and Glacier National Park. GES operates an exhibition and conference management business, as well as a marketing agency called Spiro.

Viad is the successor company of the bus operator The Greyhound Corporation, which was founded in 1926 and reshaped into a financial services company over the years. Greyhound then entered the consumer products sector and became Dial Corp, which was renamed Viad after the consumer products unit was spun off in 1996.

The conglomerate divested most of its businesses - including the Greyhound bus line - over the decades, eventually leaving the successor company with the GES and Pursuit units.

Moelis and law firm Latham & Watkins advised Viad on the deal.

(Reporting by Abigail Summerville in New York; Editing by Jamie Freed)