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Thomas Cook Sells North American BusinessMarch 26, 2013 By: Newswire Travel Agent
Thomas Cook Group plc reports it has agreed to sell Thomas Cook Canada Inc. and Thomas Cook USA Holdings, Inc., together known as Thomas Cook North America (“TCNA”), to Red Label Vacations Inc. (Redtag.ca “Red Tag”). The transaction is for cash $5.3 million Canadian dollars.
TCNA operates a tour operator and distribution network in Canada. TCNA also owns ABC Corporate Services Inc. and D-FW Travel Arrangements Inc. in the United States.
Cook reports the transaction is expected to be completed by May 31, 2013. Proceeds will be used to reduce the borrowings of the Thomas Cook Group.
Harriet Green, Chief Executive, Thomas Cook Group plc said, “As we continue to drive the transformation of the Thomas Cook Group I am pleased to have reached agreement to divest our North American business, enabling us to focus on our core segments and future growth. The combination of TCNA’s product portfolio and Red Tag’s online presence form an attractive proposition for Canadian customers and we wish the team every success in the future."