UK tourism major Thomas Cook Group Plc (LON:TCG) said it had agreed to divest its unit Thomas Cook North America Inc (TCNA), comprising Thomas Cook Canada Inc and Thomas Cook USA Holdings Inc, for CAD5.3m (USD5.2m/EUR4m) in cash.
The buyer is Canadian Red Label Vacations Inc, which owns and operates the Redtag.ca web portal for online travel agency services.
The target operates a tour operator and distribution network in Canada, as well as owns ABC Corporate Services Inc and D-FW Travel Arrangements Inc in the US.
The deal is subject to regulatory approval, the release of guarantees by Thomas Cook to third parties and to financing guarantees by TCNA, among other customary closing conditions, and is seen to be completed by the end of May.
The vendor said the sale would enable it concentrate on its core segments and future growth. It will use the proceeds to cut its debt.