Transat buying Canadian division of Thomas Cook Travel

Transat A.T. Inc. said Monday that it is buying Canadian travel agency Thomas Cook Travel Ltd. for $7.4 million.

Based in Mississauga, Ont, Thomas Cook's Canadian network includes 190 travel agencies, 124 of which are franchised and 66 owned, under the Thomas Cook and Marlin Travel banners. The company also has 22 foreign exchange offices.

"With this acquisition, Transat is strengthening its presence in Ontario and Western Canada, which is in line with our growth strategy and our business model," said Jean-Marc Eustache, the president and CEO of Transat, in a statement.

Montreal-based Transat (TSX:TRZ.b) has tour operators in Canada and France. The company also runs Air Transat.

The acquisition of Thomas Cook Travel will make Transat the country's largest travel agency network with 430 outlets, the company said prior to the opening of stock markets.

Shares of Transat were unchanged on Monday, finishing at $19.50.