Thomas Cook sells Gold Medal to Dubai-based dnata
Thomas Cook has sold Gold Medal to Dubai-based dnata for £45 million.
The deal with dnata, which is part of the Emirates Group, is expected to complete on or about February 27.
The sale, which includes the flight only brand Airline Network, will result in a loss for Thomas Cook of £34 million, arising from the write-off of goodwill recognised at the time it bought Gold Medal in 2009.
Gold Medal will continue as the exclusive supplier of long-haul scheduled flights to Thomas Cook in the UK under the terms of a long-term commercial agreement.
Based in Preston, Gold Medal employs about 470 people, led by managing director Steve Barrass, all of whom are expected to remain with the business on completion of the transaction, said Thomas Cook.
Group chief executive Harriet Green added:"This latest transaction represents another important step in the transformation of our UK business, consistent with our strategy of focusing on our core brands and products, whilst offering our customers choice and flexibility.
"It brings the total amount generated by our divestitures programme to £125 million, thereby achieving our previously communicated target of £100m – £150m in divestitures by the end of (full year) 2015, and thus demonstrating that we continue to deliver on our commitments, in this case, 18 months prior to our target date."
Thomas Cook today announced it had reduced its first-quarter loss to the end of December 2013 by £10 million to £56 million.
"We believe that this latest strategic partnership with Gold Medal and dnata will further enhance the wide range of flexible options we are able to offer our customers," added Green.
"Extending our portfolio of strategic partnerships in this way is beneficial for all of our stakeholders and we look forward to working more closely with dnata in the future and wish the new venture continued success."
The aggregate value of the gross assets of Gold Medal and Airline Network was £116m, and their combined pre-tax profit was £6m.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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