Thomas Cook is paying £47.5 million for the remaining half of operator Gold Medal it does not own.
The company paid almost £25 million for a 50.01% stake in the business in April from founder Ken Townsley.
It is now acquiring the remaining 49.99% shareholding and expects to make annual ‘synergy savings’ of £10 million from the integration of Gold Medal with other Thomas Cook scheduled businesses in the UK over time.
Gold Medal achieved pre-tax profit of £8.1 million on gross sales of £309.7 million in the year ending September 30 with further synergies still to be realised.
Thomson Cook group chief executive Manny Fontenla-Novoa said: “Today’s agreement to acquire the remaining stake in Gold Medal underlines our commitment to further strengthening our position in the growing independent travel sector.
“Since we acquired a majority stake in the business almost a year ago, Gold Medal has traded exceptionally well, clearly demonstrating the strategic importance of having a strong presence in this market.
“We’re confident the business will continue its strong growth and to generate synergies within the Thomas Cook Group.”
The deal is structured so that Thomas Cook today acquires an additional 26.31% interest in Thomas Cook Investments Limited, the holding company of Gold Medal, for £25 million to be satisfied by way of a non-interest bearing loan note which is redeemable between April 2011 and October 2011.
The remaining 23.68% interest in TCI is expected to be acquired through the exercise of a series of call and put options between January 2010 and October 2010 for a further £22.5 million.
by Phil Davies
