Thomas Cook has followed up its successful bid for a majority stake in Gold Medal in December by scooping accommodation-only supplier Med Hotels today.
The lastminute.com-owned trade bed supplier was the second-largest player in the market behind Hotels4U.com, which Cook bought last year.
As part of the deal, which has been long-touted and was sealed moments ago, lastminute will have access to Thomas Cook product. Med Hotels staff are understood to have been told about the deal.
Insiders said the deal was seen as a good one for lastminute, which has not sold Thomas Cook for a number of years.
As for Thomas Cook, the acquisition is being seen as a way of increasing profits in a notoriously low-margin sector.
It is also regarded as a bid by Thomas Cook to grow by acquisition in relation to its big rival, Tui Travel, in the fight to become the biggest player in the UK holiday market.
Tui, which was linked to an aborted attempt to buy Travelzest last year, has stated it has put its acquisition activity on hold due to the current economic conditions.
