21st Dec 2009 13:43
21 December 2009
THOMAS COOK GROUP AGREES TO ACQUIRE REMAINING STAKE IN GOLD MEDAL
Thomas Cook Group plc ('Thomas Cook') has agreed to acquire the remaining 49.99% economic stake in Gold Medal International Limited ('Gold Medal'), a leading UK independent travel company from its founder, Ken Townsley.
Thomas Cook purchased a 50.01% economic interest in Gold Medal in April 2009 for a cash payment of £24.9 million (which included £21.1 million of net cash in the business) and the contribution of its Flight Savers business. Annual synergies were originally expected in excess of £4 million. Thomas Cook has agreed to acquire the remainder of the Gold Medal business in advance of its call option becoming exercisable on 31 March 2010 in order to accelerate synergies. It is intended that additional annual synergies of £10 million will be generated out of the transaction from the integration of Gold Medal with other Thomas Cook scheduled businesses in the UK over time.
The consideration payable for the remaining 49.99% stake is £47.5 million. The acquisition is structured so that Thomas Cook today acquires an additional 26.31% interest in Thomas Cook Investments (3) Limited ('TCI(3)'), 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(3) 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.
For the year ended 30 September 2009, Gold Medal achieved pro-forma EBITDA of £10.5 million and profit before tax of £8.1 million on gross sales of £309.7 million with further synergies still to be realised.
Manny Fontenla-Novoa, Group Chief Executive, Thomas Cook Group 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."
Notes to Editors:
About Thomas Cook Group plc
Thomas Cook Group plc is one of the world's leading travel groups with sales of £9.3 billion and 22.1 million customers. The Group operates under five geographical segments in 21 countries, in which it is number one or two in all its core markets. Its business is supported by 31,000 employees, a fleet of 95 aircraft and a network of over 3,400 owned and franchised travel stores.
For further information please contact:
Brunswick Group LLP Tel: +44 (0)20 7404 5959
Fiona Mulcahy
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