Thomas Cook is set to take a £4 million hit on the disposal of UK corporate travel arm after agreeing a sale to a Middle East-owned travel firm.
Mawasem Travel & Tourism Ltd, a subsidiary of the Al Tayyar Group, has agreed to pay a consideration of £13.5 million for Co-operative Travel Management, although a write-off of intangible assets and goodwill means it will actually record a loss.
The UK corporate travel business was part of the businesses merged in 2011 as part of the joint venture between Cook, the Co-operative Group and Midlands Co-operative.
Harriet Green, chief executive of Thomas Cook Group, said: “This sale enables us to further intensify our focus on those key brands and products that are core to delivering our strategy for sustainable profitable growth.
“We wish Mawasem and the corporate travel team every success.”
Co-operative travel management’s 200 employees will remain with the business following the sale.
The company contributed net revenues of £11m and earnings before interest and taxes (EBIT) of £2m in the financial year ended September 30 2013
Earlier this year the Middle Eastern-owned Al Tayyar Group acquired Cook’s Elegant Resorts business.
Other businesses included in the joint venture were Freedom Travel and Co-operative Personal Travel Advisors, both of which are also rumoured to be up for sale.
The Midcounties Co-operative were rumoured to be one of the potential suitors but earlier this month distanced itself from an acquisition.