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Thomas Cook acquires Gold Medal
Thursday, 18 Dec, 2008
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Long haul specialist Gold Medal International is being taken over by Thomas Cook.
The group is paying an initial £24.9 million for a half share of the business.
The balance will be paid through an option mechanism with payment tied to financial performance.
In addition Thomas Cook will contribute its Flight Savers scheduled flights business to Gold Medal.
Gold Medal is the UK’s largest privately owned ATOL licence holder, with more than 550,000 passengers licensed and employs 500 staff at its Preston headquarters.
Gold Medal, which is expected to deliver more than £9 million of EBITDA in the year ending March 31, 2009, expands Thomas Cook’s presence in the indepedent travel sector.
The deal has been made with Gold Medal founder and sole shareholder Ken Townsley.
It is subject to competition clearance which Thomas Cook expects to gain in the first quarter of 2009.
The company’s brands include Gold Medal, which sells through independent travel agencies, Netflights.com, which sells directly to consumers, and luxury operator Pure Luxury.
Thomas Cook said it is intended that the combined Gold Medal and Flight Savers business will operate as a standalone entity.
Savings of more than £4 million a year will be generated out of the transaction as a result of cost efficiencies and better distribution.
The Gold Medal management team will report to Thomas Cook’s Ian Derbyshire, CEO of independent travel for UK & Ireland.
Thomas Cook group CEO Manny Fontenla-Novoa said: "The acquisition of Gold Medal is a very good opportunity to strengthen significantly our position in the important independent travel sector.
“Through Gold Medal we have access to excellent product, great technology and highly experienced travel experts, and I believe that we have secured a financially attractive transaction with appropriate incentives for existing management to deliver further value in the business.
“I have great confidence that this acquisition represents excellent value for the group and will drive further synergies and customer benefits."
by Phil Davies
Phil Davies
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