Thomas Cook buys French and Canadian businesses

By Matthew Scuffham

LONDON (Reuters) - Thomas Cook (TCG.L), Europe's second-largest travel firm, said it had bought up businesses in France and Canada on Monday for a combined $222 million, extending its recent acquisition spree.

The company has agreed to buy French operator Jet Tours from Club Mediterranee (CMIP.PA) for 70 million euros (56 million pounds), subject to works council consultation and regulatory approval.

It also announced the acquisition of TriWest Travel Holdings (TTH), a travel wholesaler in Canada, subject to regulatory approval, for a maximum of 114 million Canadian dollars (56.6 million pounds).

Thomas Cook has pursued an aggressive acquisition strategy since its creation last year following the merger of Arcandor's (AROG.DE) travel unit and UK company MyTravel, looking to utilise its combined strength in the highly competitive but fragmented tour operating industry.

It recently spent 250 million euros on a string of acquisitions in India and the Middle East and is in talks regarding possible deals in the rapidly-growing Russian market.

Paris-based Jet Tours, whose brands also include Club Eldorador and Austral Lagons, is a premium tour operator which serves about 270,000 customers each year.

Last year, it had revenues of 313.7 million euros and earnings before interest, tax, depreciation and amortisation (EBITDA) of 3.4 million euros.

Thomas Cook said the business is expected to significantly expand sales in the current year and achieve EBITDA of more than 8 million euros.