Thomas Cook Group is to buy the remaining 49.99% stake in Gold Medal from its founder, Ken Townsley for £47.5 million.
The group bought a 50.01% stake in the flight consolidator and tour operator for £24.9 million from Townsley in April 2009. The deal also involved Gold Medal managing Thomas Cooks’ Flight Savers business, which provided scheduled flights to the Thomas Cook sales distribution network in the UK and Ireland.
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.
It is intended that additional annual synergies of £10 million will be generated from the integration of Gold Medal with other Thomas Cook scheduled businesses in the UK.
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.
Thomas Cook Group chief executive Manny Fontenla-Novoa, 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.”