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September 2022, Virtual
September 29 2022, Virtual
Chambers Travel Group’s parent company Corporate Travel Management (CTM) is expanding its US footprint with the acquisition of California-based Montrose Travel.
CTM expects the purchase to make it one of the 12 largest travel companies in the US, three years after entering the market.
The company’s total transactional value in North America is now expected to exceed AU$1 billion in the 2016 calendar year following the AU$47.6 million (US$ 34.32m) purchase.
CTM has upgraded its profit forecast to AU$68 million for this financial year.
CTM founder and managing director Jamie Pherous said the deal met the company’s strict criteria for acquisitions and followed 12 months partnering with Montrose Travel on programmes and client services.
“We have consistently said to the market and our industry that we would pursue acquisitions where they make our business stronger and deliver compelling customer benefits,” said Pherous.
Pherous said that the acquisition of Montrose Travel would establish a Californian hub, growing business in a strategic North American market.
“Together with our well established businesses in North America, we can significantly improve our offering for local, regional and global clients,” he said.
The acquisition will be funded through stock, with the balance (80 per cent) paid from operating cash flow from the US business and short term debt.
CTM forecasts the Montrose Travel business will contribute AU$4 million in EBITDA in financial year 2015-16 (AU$8 million on an annualised basis), with six months of trading from the effective date of January 1 2016.