Thomas Cook Group (London) has announced it has agreed to sell Thomas Cook Canada Inc. and Thomas Cook USA Holdings Inc. to Red Label Vacations Inc. The group issued this statement:
Thomas Cook Group plc announces it has agreed to sell Thomas Cook Canada Inc. and Thomas Cook USA Holdings, Inc., together known as Thomas Cook North America (“TCNA”), to Red Label Vacations Inc. (which trades as Redtag.ca “Red Tag”). The transaction is for cash consideration of $5.3 million Canadian dollars (£3.4 million at current exchange rates).
TCNA operates a tour operator and distribution network in Canada. TCNA also owns ABC Corporate Services Inc. and D-FW Travel Arrangements Inc. in the United States.
Completion of the transaction is subject to a number of conditions, including clearance by the Competition Bureau of Canada, the release of guarantees provided by Thomas Cook Group plc to third parties on behalf of TCNA and the release of guarantees provided by TCNA in support of the Group’s financing arrangements. The transaction is expected to complete by May 31, 2013. Proceeds will be used to reduce the borrowings of the Thomas Cook Group.
Copyright Photo: TMK Photography. Boeing 757-28A C-GJZB (msn 28203) operated by Jazz Aviation taxies at the Toronto (Pearson) base.
Thomas Cook (Canada):
Editor’s “To The Point” Observation”: At the height of Thomas Cook Canada, Jazz Aviation was operating a fleet of six leased Boeing 757-200s under the Thomas Cook Airlines (Canada) brand. On April 13, 2012 Thomas Cook announced it was ending the five-year contract with Jazz and all services ended on April 30, 2012. Since then Thomas Cook has been using other airlines as needed.