Thomas Cook buys Jet Tours

Travel agent Thomas Cook has agreed to buy French operator Jet Tours from Club Mediterranee SA for €70 million, subject to works council consultation and regulatory approval.

The company also announced the acquisition of TriWest Travel Holdings (TTH), an independent travel wholesaler in Canada, subject to regulatory approval, for a maximum of 114 million Canadian dollars.

Paris-based Jet Tours, whose brands also include Club Eldorador and Austral Lagons, is a premium tour operator which serves about 270,000 customers each year.

Last year, it had revenues of €313.7 million and EBITDA of €3.4 million.

Thomas Cook said the business is expected to significantly expand sales in the current year and achieve EBITDA of more than €8 million. The combination of Jet Tours and Thomas Cook France will form the country's third largest tour operator, with a combined market share of about 10 per cent.

Thomas Cook said it expects to realise "substantial" synergies from the integration of the two businesses.

It said it will also explore strategic flying partnership opportunities and look to sell Club Med products through Thomas Cook travel agencies.

TTH, which focuses on commission-based travel business across the Canadian market, achieved revenues of $171.7 million last year and EBITDA of $14.4 million.

Thomas Cook expects "substantial" synergies to be achieved from the integration of TTH and Thomas Cook North America.