Hotel Online Special Report
---
Thomas Cook and Carlson UK Leisure Travel Business  Announce Intention to Merge
New Partnership to Create Expanded Co-Owned Thomas Cook Group
 
LONDON, Oct. 6, 1998 -  One of the most significant deals in the global travel industry in recent years was announced today, as two world leaders in travel -- Thomas Cook and Carlson Companies -- announced their intention to merge Thomas Cook's worldwide leisure travel and financial services business with Carlson's UK leisure travel business. This would result in the creation of an expanded group operating under the name Thomas Cook, which US-based Carlson Companies Inc. and Westdeutsche Landesbank (WestLB) -- Thomas Cook's parent company -- would co-own, with WestLB owning a majority stake.

The proposed merger, to follow a period of due diligence and regulatory approval, would create one of the world's largest leisure travel companies and one of the UK's largest vertically integrated travel groups. The UK company would carry over 2.5 million package holidaymakers a year, operate a fleet of 32 aircraft and serve customers through a combined network of 800 travel shops nationwide and through three rapidly expanding call centers.

As neither WestLB or Carlson Companies are listed, financial terms of the agreement would not be disclosed in the proposed merger.

WestLB would contribute to the new partnership Thomas Cook's worldwide business, including its travel businesses based in Canada, Australia and India and its worldwide financial and global services businesses. In the UK, Thomas Cook travel businesses comprise: 385 leisure travel agencies and the highly successful Thomas Cook Direct business; a 14-strong fleet of leisure aircraft, Flying Colours; and its tour operating businesses, Sunworld, Flying Colours and Thomas Cook Holidays.

On the Carlson side, the company would contribute 412 Carlson Worldchoice travel agencies; its 18-plane Caledonian and Peach Airways charter aircraft fleet; and its tour operations which include the Inspirations, Skiers World brands, Air Savers flight consolidators, and seat-only sales company, Flights by Inspirations.

In addition, Carlson would bring to the partnership its strong link with the 650 independently - owned travel shops of ARTAC (Association of Retail Travel Agents Consortia) which currently co-brands with Carlson using the Worldchoice brand. The new expanded Thomas Cook would plan to build on this relationship.

It was announced that the newly created company would most likely retain both the Thomas Cook and Worldchoice brands in the UK retail travel agency market.

The enlarged Thomas Cook Group would result in the creation of an international travel and financial services business that would generate annual sales approaching 25 billion pounds, employ over 20,000 staff and operate through a global network of over 3,500 wholly-owned and representative locations in over 100 countries. Thomas Cook is the world's largest issuer of travelers cheques outside the USA and owns the world's largest network of retail foreign exchange bureaux, 100 of which are located at 45 of the world's leading international airports.

Dr. Johannes Ringel, Chairman of the Thomas Cook Group and member of the Management Board of WestLB, said: "This merger has the potential to bring together two of the world's best known and respected brands in leisure travel. It would allow us both to strengthen our position in the UK significantly, and enhance our position in one of the world's largest industries."

Marilyn Carlson Nelson, Vice Chair, President and Chief Executive of US-based Carlson Companies, said: "It has always been our company's plan to speak with a louder voice in the UK leisure agency market. Though we had several options, we chose to partner with Cook to create a new world force in leisure travel, just as we created a new global force in business travel management by partnering with Accor to create Carlson Wagonlit Travel." Nelson added, "We view this as yet another step in our company's global strategy to seek meaningful, mutually-beneficial partnerships with strong brands."

Thomas Cook, the "first name" in travel, was founded in the UK in 1841. Over the past two years, the company has invested heavily in expanding its travel and financial services operations in order to create long-term sustainable growth. In particular, it has played a key role in the ongoing consolidation of the UK travel market through its acquisition of Sunworld and Flying Colours. (See Note to Editors for information on the Thomas Cook Group).

Carlson traces its travel roots back to America's oldest travel agency network, Ask Mr. Foster, founded in 1888 in St. Augustine, Florida. Carlson entered the UK travel market in 1990 through its acquisition of Scotland-based AT Mays Travel. In 1997 Carlson acquired the Inspirations group. (See Note to Editors for information on Carlson Companies Inc.)

Michael Batt, President of Carlson Leisure Group worldwide, the parent organization to Carlson Leisure Group-UK, said "the proposed merger is complementary both strategically and geographically for both parties and will create substantial customer and shareholder value."

In terms of the structure of the new group, the companies announced preliminary organizational plans: WestLB would have the Chair of the Board and CLG would have the Deputy Chair. Under the proposed terms of the merger, the Board would include five representatives from WestLB and three from Carlson.

Ulrich Zierke, Thomas Cook's Chief Executive, remarked: "To achieve our shared vision of creating a world-class, customer-driven, travel and financial services group, we need a workforce that is both motivated and dedicated to delivering outstanding customer service. The employees of both Thomas Cook and Carlson are highly regarded in the industry. Together, I have every confidence that we can raise the game in the travel business, providing travelers with good value, quality products and a choice of ways to book their holidays -- be that face-to-face, by telephone or on-line."

Carlson Companies also operates business travel agencies throughout the world through its Carlson Wagonlit Travel brand, which is co-owned with Accor of Paris, France. These business travel operations would not be affected by today's announcement, and would remain separately owned by Carlson and Accor. In addition, Carlson's leisure travel operations in the US -- where it is the country's largest travel agency franchiser, trading under Carlson Wagonlit Travel and Travel Agents International brands -- would also be unaffected by today's news.

Carlson Companies Inc. Carlson Companies Inc. is one of America's largest privately owned companies. Having been established for the past 60 years, today the business operates in more than 140 countries, employs 147,000 staff and generates sales in excess of US$20 billion.  As a global leader in corporate and hospitality services within the travel, marketing, incentives and hospitality industries, some of its most recognized brands include Radisson and Regent International Hotels, the international restaurant chain TGI Friday's and Carlson Wagonlit Travel, one of the largest corporate travel companies in the world.

Westdeutsche Landesbank, one of Germany's largest banks, acquired Thomas Cook from Midland Bank in 1992.

###
 
Contact:
Alexis Coles of Thomas Cook Group,
44-171-408-4218,  
Dr. Michael Wilde of West LB,
49-211-826-2210; 
Alan Ramsay of Carlson Leisure Group - UK, 44-141-951-0321, 
 Douglas Cody of Carlson Companies,
001-612-449-2488
 --
 
Also See:
Marilyn Carlson Nelson Ranks Seventh Among Fortune's 50 Most Powerful Women in American / Sept 1998 
1997 Was Record-Breaking Year for Carlson Companies, Inc. / March 1998 

To search Hotel Online data base of News and Trends Go to Hotel.Online Search
Back to Hotel.Online Press Releases
Home | Welcome! | Hospitality News | Classifieds | Catalogs & Pricing | Viewpoint Forum | Ideas/Trends
Please contact Hotel.Online with your comments and suggestions.