Corporate Travel Management (CTM) has expanded its global footprint with the acquisition of two TMCs in Europe and the US.
The Australian company has taken control of UK-based Chambers Travel and Diplomat Travel in the USA for a combined total of AU$52.6 million (US$44.6m).
Following the two acquisitions, both of which are expected to be completed on 2 January 2015, CTM will operate in 46 cities across 23 countries, employing more than 1,800 staff.
“Both acquisitions meet our strict acquisition criteria. They possess capable and passionate management teams, are leaders in corporate travel in their respective regions, enjoy high client and staff retention, and will have significant ownership in CTM via CTD stock,” said CTM’s managing director, Jamie Pherous.
“We are delighted to have Chambers Travel become our anchor point in the UK and Europe to lead future growth in this region. This partnership culminates a decade of successfully working together allowing a seamless transition for our respective management teams.
“Meanwhile, Diplomat Travel has a highly capable team with some of the finest expertise in the industry that we have ever seen. The Diplomat Travel team will provide an excellent East Coast base to deliver future growth,” he added.
Headquartered in London, Chambers Travel has operations in the UK, France, Germany, the Netherlands, Switzerland, Sweden and the Czech Republic, and services clients in 10 European languages.
Chambers CEO Chris Thelen and the senior management team will remain in place under the agreement, which includes elected share ownership. Chambers will become the European anchor of CTM.
“Our aspiration is to grow Chambers into a much larger European business and we believe that by joining forces with CTM and becoming their new European regional headquarters, we will be able to accelerate that aspiration,” commented Chris Thelen, CEO, Chambers Travel Group. “We have worked with CTM on a number of global bids over the last ten years and in that time watched them build an exceptional business based on highly personalised service delivery combined with best-in-class technology to deliver meaningful ROI to clients. Chambers shares this same philosophy with regard to culture, people and service.”
Diplomat Travel is based in Washington DC, and expands CTM’s US operations to 18 cities across eight states.
CTM said the acquisitions and will contribute approximately AU$4m in pre-tax earnings to CTM’s 2015 annual results.