Thomas Cook Group today (14 February) announced that it has agreed to acquire the entire issued share capital of hotels4U.com Limited (“Hotels4U”) from Centurion Holiday Group Limited (“CHG”). 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.”
Commenting the Hotels4U acquisition by Thomas Cook, John Kent, chief executive youtravel.com said “I would like to congratulate my good friends Haim Perry and Jacky Bedlow who have worked so hard over the past four years to build this great business. I'm very happy for them.
I'd also like to congratulate Manny and the team at Thomas Cook for this acquisition. As the one who invented the resort accommodation-only sector with medhotels.com I am gratified to see the big boys taking it seriously and realising that this model is the future.
Strategically for youtravel.com this announcement means that we will be redoubling our efforts to increase our customer base and work even more closely with our trade partners. With the continuing strong support from our investors Barclays Ventures we intend to consolidate our position and be the number one player in the accommodation-only market across Europe.”