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Thomas Cook Group plc announces that it has agreed to acquire 100% of Öger Tours GmbH, a leading German tour operator specialising in package holidays to Turkey, from its founding shareholder Vural Öger.
Founded in 1969, Öger Tours is one of the leading tour operators in Germany, selling primarily package holidays to Turkey. In the year ending 31 October 2009, Öger Tours carried more than 400,000 passengers, and reported gross revenues of 256 million euros and operating profit of 3.3 million euros. Current trading is strong and Öger Tours expects to grow revenue and profit in the current year.
Thomas Cook expects to acquire Öger Tours for approximately 30 million euros, 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 euros at no cost.
It is anticipated that the transaction will generate significant synergies in excess of 8 million euros per annum through operational savings, more in-house flying with Condor, better utilisation of aircraft and the combined purchasing of flights, hotels and in-resort services. Thomas Cook expects to realise 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.
Through the acquisition Thomas Cook will strengthen its position as the second largest travel group in Germany and further increase its strong presence in Turkey, a strategically important destination for the entire Group.
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.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
