ONE of Scotland's oldest holiday companies has been snapped up by a US travel management firm.
The UK subsidiary of Protravel International paid an undisclosed sum for Glasgow-based cruise and golf holiday specialist Scotia Travel.
The new owners are promising an unspecified investment in the company, which is likely to create additional jobs in Scotland.
Protravel has its headquarters in New York City and employs 800 staff across 22 offices in the US and London. It was founded in 1984 and now has a $850 million (£542m) turnover.
It is understood the Scotia Travel name will be retained after the takeover.
Tina Rose, managing director of Protravel in the UK, said: "The deal is a great fit for both businesses.
"Scotia Travel has an outstanding reputation in the cruise and golf markets, and will be a major asset to Protravel as we develop our business in these specialist travel markets.
"Scotia Travel will also benefit significantly as we will promote the business very actively across our international network of offices and agents.
"The cruise and golf markets have considerable potential for growth, and Scotia Travel is well-positioned to capitalise on that opportunity."
Scotia Travel director Kennedy Cree is staying on as general manager and said: "Although we have been trading very successfully for 65 years, the travel market is changing rapidly and we needed the reach and resources of an international partner to help us market our expertise more widely.
"This deal will allow us to achieve that, and we are greatly excited by the opportunity."
The transaction was brokered by the Glasgow arm of accountancy firm Haines Watts.
Richard Gibson, managing director of the office, expects further deals in the travel arena in the coming months.
He said: "The travel industry is under considerable pressure to reduce costs, and there is likely to be further consolidation as smaller specialists seek a buyer."
The sector is facing pressures due to a drop in consumer spending because of the economic slump and austerity measures introduced by the UK Government.
Bookings to key holiday destinations such as Egypt, Morocco and Tunisia have also been disrupted due to the Arab Spring uprisings.
At the large corporate end of the market, Thomas Cook has committed to closing 200 of its 1300 high street stores in a bid cut its £890m debt.
That followed a bailout from its bankers and a series of profit warnings during 2011.
In Scotland, AIM-listed Minoan Group, which transferred its headquarters to Glasgow, has acquired three independent businesses in the past year as chief executive Duncan Wilson seeks to build a business of scale.
Minoan took stakes in King World Travel, Stewart Travel Centre and John Semple Travel.
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