Member Article

Leeds’ BDO team advises Thomas Cook on sale of corporate travel business

The corporate finance team at BDO LLP has advised Thomas Cook Group plc on the disposal of its UK corporate travel business, in a deal that has been described as a ‘door opener’ for more international trade deals for the sector.

Co-operative Travel Management, part of the joint venture between Thomas Cook, Co-operative Group and Midlands Co-operative, is set to be acquired by the UK subsidiary of Al Tayyar Group, the leading Middle Eastern-owned global travel group.

The deal is expected to complete by the end of June 2014 for a consideration of £13.5 million. It follows Al Tayyar’s acquisition of Thomas Cook’s Elegant Resorts business earlier this year.

M&A partner Tim Clarke led the team at BDO LLP in Leeds, with support from Sarah Cumming, James Croxen and Natasha Hartley.

Tim Clarke said: “The disposal of Co-operative Travel Management represents an excellent outcome for both parties; allowing Thomas Cook to continue to focus on its core consumer offering, while Al Tayyar Group further expands its international footprint.

“As globalisation speeds up and international trade becomes such a pivotal part of business growth, the corporate travel industry will reap the rewards.

“It has already experienced considerable change over the last few years, but this transaction sets a precedent for the sector in that it is the first notable trade travel deal in the UK corporate travel market for some time.

“Although the market will continue to be active for private equity investors, this transaction most definitely opens the door for more international trade deals in the sector.”

Commenting on the sale, Harriet Green, Group chief executive officer of Thomas Cook Group plc, said: “This sale enables us to further intensify our focus on those key brands and products that are core to delivering our strategy for sustainable profitable growth. We wish Mawasem and the corporate travel team every success.”

This was posted in Bdaily's Members' News section by Clare Burnett .