Industry

Thomas Cook buys Kuoni firms for ₹125 cr.

Profitable buy: The acquisition will add ₹1,000 crore to Thomas Cook’s top line and ₹25 core to PBT.

Profitable buy: The acquisition will add ₹1,000 crore to Thomas Cook’s top line and ₹25 core to PBT.  

The acquisition will help the travel company expand its presence to 21 countries

Thomas Cook India Group, the holding company of Fairfax in India, has acquired five destination management companies of Kuoni Group for ₹125 crore.

“The acquisition will deliver greater synergies and growth opportunities across inbound, outbound, MICE and corporate travel businesses,” said Madhavan Menon, chairman and managing director, Thomas Cook India Group.

In April,the company had entered into an agreement with Kuoni to acquire these businesses located in Asia, Australia, Middle East, Africa and Americas and the deal closed on Thursday, Thomas Cook India said.

The acquisition will enable Thomas Cook India Group to expand its global footprint to 21 countries in 4 continents, a top executive of the company said.

These companies include Asian Trails in Asia Pacific, Allied T Pro in North America, Desert Adventures in Middle East, ATM in Australia and Private Safaris across Southern and Eastern Africa.

Topline to grow

With the addition of 17 new countries through the acquisition, Thomas Cook India Group’s travel business network had expanded significantly, Mr. Menon said adding the acquisition will add ₹1,000 crore to the company’s top line and ₹25 crore to profit before tax (PBT).

Prior to this acquisition, the Group’s Thomas Cook (India), SOTC Travel, TCI-SITA and Kuoni Hong Kong had a network spanning 4 countries which include India, Sri Lanka, Mauritius and Hong Kong. Post acquisition, The Thomas Cook India Group’s employee strength has gone up to 6,500 people in 21 countries. It has a combined revenue of ₹8,700 crore. “This acquisition of a significant part of Kuoni’s Global Destination Management network represents an important milestone for a rapidly growing Thomas Cook India Group as we deliver on our stated strategy of rapid expansion in the Asia Pacific region,” he said.

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Printable version | Feb 24, 2020 1:10:34 PM | https://www.thehindu.com/business/Industry/thomas-cook-buys-kuoni-firms-for-125-cr/article19180505.ece

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