Dubai-based travel services provider Dnata is believed to be in advanced talks over the acquisition of Thomas Cook-owned Gold Medal.
The Emirates Group-owned company has previously invested in UK companies with the acquisition of online travel agent Travel Republic in December 2011.
Gold Medal also has a sizeable Dubai operation, meaning it would be a strategic fit for Dnata’s portfolio of businesses which range from leisure and corporate travel providers to ground handling and in-flight catering.
Travel Weekly understands Dnata representatives visited Gold Medal’s offices in Preston earlier last week. It is thought a deal could be completed as early as next month.
Gold Medal is one of the Thomas Cook brands which has been repeatedly linked with a sale as chief executive Harriet Green looks to streamline the group’s portfolio.
One of Cook’s other specialist brands, ski and activity specialist Neilson, was sold to private equity firm Risk Capital Partners for £9.15 million on November 25.
And yesterday Cook announced the sale of ancillaries business Essential Travel to Holiday Extras for £2.1 million.
Thomas Cook bought a 50.01% majority stake in Gold Medal, which also owns the consumer-facing netflights.com brand, for £24.9 million from owner Ken Townsley in 2009.
It then exercised a right to buy the remaining share in the consolidator in December 2009 for £47.5 million promising £10 million of synergies from the merger of the two firms.
Travel Weekly understands Dnata had been among parties interested in Gold Medal at that time but that its interest waned once Cook came in with its offer.
Gold Medal rival Travel 2, owned by Stella Travel Services, was also tipped as a potential suitor.
Townsley, a former Blackpool airport baggage handler, was reported to have stood to make £87 million from the deal and said the Cook offer was the “best of many on the table”.
Thomas Cook was asked about the talks with Dnata but said it did not want to make any comment.