LBO France to buy troubled Fram for Karavel merger

The confirmation of LBO's interest for Fram emerged as the business was placed under receivership by Toulouse's trade court, shortly after suspension of payment was declared.

This follows the announcement by Chinese aviation corporate HNA on 18 October that it would pull out of the process, one week after presenting a bid for the company that the French press valued at €10m.

Founded in 1949 and headquartered in Toulouse, Fram is a tour operator providing hospitality, transportation and distribution services to the tourism industry. LBO France's offer could see it merged with Karavel-Promovacances, a Parisian travel agency the firm bought from Barclays Private Equity and Euromezzanine in a €200m SBO in April 2011.

Should LBO's bid be successful, the entirety of Fram's part-time employees and 356 of those working full-time could keep their jobs; this represents 77% of the company's current 2,000-strong workforce.

In addition, conversations are underway with the French tourism industry body to ensure the business retains its existing client base, according to LBO France.

LBO's acquisition plans for a French tourism asset come five months after the GP divested its stake in operator Cityvision via the sale of the comapny's SLT and SELT divisions to RATP, and that of Cityvision and La Marina de Bercy to Ekkio Capital.

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• LBO France