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Independent Valuation of TUI's Leading Brands for its Pension Schemes

Client: TUI Travel


Intangible Business was engaged as an independent brand valuation specialist to advise both TUI Travel and representatives of its six pension schemes on the value of TUI Travel’s leading brands, Thomson and First Choice. Intangible Business was also charged with communicating and presenting the valuation details and specific areas of interest to trustees to ensure a mutually beneficial solution for both TUI Travel and the pension schemes.


On 31 May 2011, four of the current six schemes will merge and the three remaining schemes have been provided with a limited interest in a partnership established by TUI Travel PLC which holds the Thomson and First Choice brands. Under the partnership arrangements, TUI Travel commits to making payments of up to £275 million in 2026, if and to the extent that the pension schemes remain in deficit at that time. In addition the partnership, which will receive royalty payments from TUI UK for brand use, will make annual income distributions to the pension schemes totalling circa £16.5 million for 15 years until 2026.


The partnership’s interest in the Thomson and First Choice brands will provide collateral for these payments. All revenues, profits and cash flows from the First Choice and Thomson businesses will continue to be consolidated in the Group’s accounts and TUI Travel will retain day-to-day operational control of the brands. The agreement will not impact the deficit calculated on an IAS 19 basis.