Thomas Cook Acquires German Tour Operator for €30 Million

Thomas Cook Group has agreed to acquire 100 percent of Öger Tours, a German tour operator specializing in package holidays to Turkey, from its founding shareholder Vural Öger.

Thomas Cook expects to acquire Öger Tours for approximately €30 million, based on cash consideration to be settled at closing and average net debt and similar liabilities over the last 12 months. Additionally, other businesses owned by the seller have agreed to provide Thomas Cook with agency and accommodation services in Turkey worth €2.5 million at no cost.

Öger Tours primarily sells package holidays to Turkey. Thomas Cook will retain the Öger Tours brand as a specialist operator to Turkey and other nearby destinations and will maintain its Hamburg offices.

In the year ending 31 October 2009, Öger Tours carried more than 400,000 passengers, and reported gross revenues of €256 million and operating profit of €3.3 million. Current trading is strong and Öger Tours expects to grow revenue and profit in the current year.

It is anticipated that the transaction will generate significant synergies in excess of €8 million per annum through operational savings, more in-house flying with Condor, better utilization of aircraft and the combined purchasing of flights, hotels and in-resort services.

Thomas Cook expects to realize the full benefit of these synergies in the second full year of ownership. Thomas Cook will retain the Öger Tours brand as a specialist operator to Turkey and other nearby destinations and will maintain its Hamburg offices.

Öger Tours is currently managed by Vural Öger and his daughter Nina Öger. At completion they will both resign as directors of Öger Tours, but will continue to provide advice and support to Thomas Cook through their strong relationships in Turkey.

The acquisition is conditional upon antitrust clearance from the European Commission and is expected to complete in or before September 2010.