Thomas Cook Group has agreed to acquire the entire issued share capital of hotels4U.com from Centurion Holiday Group.The initial consideration, net of amounts to be reinvested by Haim Perry, Managing Director of Hotels4U and Jacky Bedlow, Finance Director, is £21.8 million payable in cash from internal resources. The management’s reinvestment is subject to earn out arrangements based on the profitability of Hotels4U up to 2013.
Hotels4U, which sells exclusively via the internet, is the UK’s largest independent bed bank, providing accommodation and resort transfers to over 500,000 customers per year and has access to in excess of 30,000 hotels internationally. The current Hotels4U senior management team will remain with the business, including Haim Perry who founded the company in 2003.
Commenting on the acquisition agreement, Manny Fontenla-Novoa, Group Chief Executive, Thomas Cook Group plc said: “We are delighted to have signed this agreement with Hotels4U. This is an acquisition that fits perfectly with our strategy of enhancing Thomas Cook’s position in the independent travel sector and will also further strengthen our mainstream business. Hotels4u is already a highly successful business led by an experienced management team and we look forward to working with Haim Perry and his team to further develop our position in this rapidly growing segment and to building on our customer offering.”
Haim Perry, Managing Director of Hotels4U, added: “I am delighted that we have reached an agreement with Thomas Cook, who we believe is our ideal partner going forward. As a business we now have access to the international markets that Thomas Cook is present in and therefore the opportunity for further growth.”