9 Jun 2008 07:00
THOMAS COOK GROUP MAKES ACQUISITIONS IN FRANCE AND CANADA
9 June 2008
Thomas Cook Group plc ("Thomas Cook") announces today the acquisition of a major Canadian travel business as well as a binding bid for one of France's foremost tour operators.
Jet Tours - France
Thomas Cook has submitted a binding offer and has entered an exclusivity agreement with the business' current owner Club Med, regarding the acquisition of the French tour operator Jet Tours. The consideration is €70 million, funded from Thomas Cook's existing cash resources and is subject to appropriate works council consultation and regulatory approval.
Paris-based Jet Tours, founded 40 years ago, is a premium tour operator and serves approximately 270,000 guests per year. Its principal brands include Jet Tours, Club Eldorador and Austral Lagons. For the year ended 31 October 2007, Jet Tours achieved revenues of €313.7 million with EBITDA of €3.4 million and as of the same date it had net cash of €19.8 million on its balance sheet. It is expected that the business will significantly grow sales in the current year and achieve an EBITDA of more than €8 million in the year ended 31 October 2008.
The combination of Jet Tours and Thomas Cook France, already the country's largest travel retailer, would form the country's third largest tour operator with a combined market share of around 10%. Jet Tours' product portfolio would complement Thomas Cook's existing offering and Thomas Cook expects to realise substantial synergies from the integration of the two businesses.
Independently, Thomas Cook and Club Med will explore strategic flying partnership opportunities with benefits accruing to both groups, as well as driving further sales of Club Med products through Thomas Cook travel agencies.
TriWest Travel Holdings - Canada
Thomas Cook has also agreed to acquire TriWest Travel Holdings ("TTH"), a leading independent travel wholesaler in Canada, subject to regulatory approval, up to a maximum consideration of C$114 million in cash, including management incentives and again funded from Thomas Cook's existing cash resources.
Headquartered in Montreal, TTH predominantly focuses on non-risk, commission-based travel business across the Canadian market. Thomas Cook North America is acquiring 100 per cent of the shares of TTH and is acquiring the business with C$17 million of net cash on its balance sheet. TTH operates under two principal brands: Fun Sun, an independent travel wholesaler, and Intair, a leading airline consolidator in Canada. For the year ended 30 November 2007, TTH achieved revenues of C$171.7 million with EBITDA of C$14.4 million.
By acquiring TTH, Thomas Cook creates a nation-wide leading independent travel business with significantly enhanced customer reach and product offering as well as a more balanced business mix. In addition, Thomas Cook expects to realise substantial synergies from the integration of the two businesses.
Manny Fontenla-Novoa, Group Chief Executive, Thomas Cook Group plc said: "Both of these acquisitions are fully in line with our strategy of becoming a leading independent travel provider and capturing growth and value in the mainstream business, as well as driving further consolidation across the sector. We see great opportunities in Jet Tours, which would be a strong fit with our existing proposition in France and would provide us with a platform for significant future growth in this important market. The acquisition of TriWest Travel Holdings will enable us to balance our revenue and profits between our mainstream charter business and independent travel brands, whilst significantly expanding our distribution reach and customer base in the region. Both deals offer substantial synergy opportunities and we look forward to working with both teams to deliver on our plans for future growth."
For further information please contact:
Brunswick Group LLP Tel: +44 (0)20 7404 5959
Laura Cummings
Sophie Brand
About Thomas Cook Group plc
Thomas Cook Group plc was formed on 19 June 2007 following the merger of Thomas Cook AG and MyTravel Group plc. The new company is one of the world's leading leisure travel groups with sales of around £9 billion (€12 billion), 19 million customers, 30,000 employees, a fleet of 97 aircraft, a network of over 3,000 owned or franchised travel stores and a number of hotels and resort properties. The Group operates in 17 source markets including: UK & Ireland; Germany, Austria, Belgium, France, the Netherlands, Poland, Hungary, Czech Republic, Sweden, Norway, Denmark, Finland, Canada, India and Egypt.