Cox & Kings has restructured its business by selling off LateRooms and Superbreak to Malvern Enterprises, a new business in which it holds a 49% stake.
The other 51% of Malvern is owned by an unnamed private equity investor.
The deal will raise £20 million which Cox & Kings said would help pay off debt.
“The transaction will enable Malvern to independently follow its own strategic growth path in the underpenetrated city breaks market within the online package tour space," said Cox & Kings.
“Brands Superbreak and LateRooms are likely to gain substantially from a unified management team under the strategic guidance of the private equity investor and Cox & Kings.”
India-based Cox & Kings bought LateRooms last autumn for £8.5 million from TUI.
York-based short break specialist Superbreak is part of Holidaybreak, which Cox & Kings acquired in 2011.
