MyTravel sells US businesses

MYTRAVEL has announced plans to push ahead with its disposal programme, following the sale of its US cruise business and loss-making US tour operators.

MyTravel has entered into an agreement to sell its US cruise businesses to National Leisure Group for £65.9 million in cash, while its loss-making US-based tour operators, SunTrips and Vacation Express are being sold to FS Tours for £9.9 million in cash over seven years.

Due to the size of MyTravel’s US cruise businesses, the sale is conditional shareholders’ approval, on getting clearance from anti-trust regulators in the US and on NLG having obtained the finance required. However, the sale is expected to go through by mid-November.

MyTravel’s US cruise businesses comprises brands such as CruisesOnly, CruiseOne, Cruises, Ship ‘n’ Shore and Landry and King. The operator’s UK-based Sun Cruises remains part of the group.

The cruises businesses made an operating profit in the year to 30 September 2002 of £7.1 million, while SunTrips/Vacation Express made a loss in the year to September 30 2002 of £6 million.

MyTravel said the disposals were necessary in order to provide sufficient working capital for the group, but it will continue to “pursue its disposal programme” and identify cost-savings.