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Specialist activity operator bought out by management

Specialist activity operator bought out by management

Travel giant Thomas Cook said yesterday it had sold specialist activity tour operator Neilson Active Holidays in a deal worth £9.1million.

Neilson was acquired by its management, backed by private equity firm Risk Capital Partners.

The deal is the second travel industry acquisition backed by Risk’s founder Luke Johnson, the former chairman of Channel 4. The company also snapped up a majority stake in the UK’s largest online cruise group – Cruise.co – earlier this year.

The business offers sailing, skiing and beach holidays to 90,000 customers annually and generated revenue of £70million last year.

It contributed about £1million to Thomas Cook earnings before interest and tax during the year to September 30.

Thomas Cook expects the sale to complete on or about December 10, and said it would lead to a £13million non-cash impairment writedown in its 2012/13 accounts.

Chief executive Harriet Green is leading an effort to raise £100million-£150million from disposals by the end of the tour company’s 2015 financial year.

She said the deal was a “result of our continuing rationalisation”.

Ms Green, who became Thomas Cook’s chief executive last year, added: “The transformation of our UK business and that of the group overall is happening at pace. We have previously undertaken a comprehensive review of our product portfolio and where we want our business to be.

“Building on our other recently-announced disposals, it will allow us to focus on those key brands, propositions and products that will deliver our strategy for profitable growth.”

Last month, Thomas Cook announced the sale of its Egyptian business after recent violent clashes hit bookings.

Yusuf Bin Ahmed Kanoo (Holdings) of Bahrain acquired Thomas Cook Egypt along with Thomas Cook Lebanon for a knockdown £6.5million.

Thomas Cook also recently offloaded the majority of its holding in NATS, the national air traffic control service, for £38million and sold its corporate foreign exchange business for £4.5million.

The group will update investors on strategy on Thursday alongside full-year results.