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Hotels4U.com sold to Thomas Cook
Thomas Cook has agreed to buy bed bank hotels4U.com for almost £22 million.
It is being acquired from Centurion Holiday Group for an initial consideration, net of amounts to be reinvested by Haim Perry, managing director of hotels4U and Jacky Bedlow, finance director, of £21.8 million payable in cash from internal resources.
The management’s reinvestment is subject to earn out arrangements based on the profitability of hotels4U up to 2013, Thomas Cook said.
The deal is designed to strengthen Thomas Cook’s position in the independent holidays sector.
Hotels4U.com, founded five years ago, handles more than 500,000 customers a year online, providing accommodation and resort transfers a year. The current senior management team will stay in place, including founder Perry.
Thomas Cook group chief executive Manny Fontenla-Novoa said: “This is an acquisition that fits perfectly with our strategy of enhancing Thomas Cook’s position in the independent travel sector and will also strengthen our mainstream business.”
Perry described Thomas Cook as “our ideal partner going forward” and said: “As a business we now have access to the international markets that Thomas Cook is present in and therefore the opportunity for further growth.”
At the same time as the purchase was announced, Thomas Cook Group reported reduced winter operating losses.
The operating loss for the two months to December 2007 was cut by almost 40 million euros to 106.8 million euros, described as being in line with company expectations and reflecting the seasonality of the business.
Trading for the current winter and summer 2008 was described as “encouraging” putting the group in a strong position for the rest of the year, a statement said.
The improved operating result was attributed to cost savings and improvements in underlying margins, partially offset by increased costs of fuel.
“Significant” year-on-year improvements were achieved in the UK and continental Europe. The UK position reflected cost savings achieved through the integration of MyTravel.
More detail follows…..
by Phil Davies
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