The Flight Centre Travel Group (FLT) has fully acquired two travel businesses in New Zealand – the leisure-focused Travel Managers Group (TMG) and corporate travel management company Executive Travel Group (ETG) – for an undisclosed sum. The deals are expected to formally settle during 1Q2018.
FLT managing director Graham Turner said the acquisitions would strengthen the company’s New Zealand operations, which is now the company’s fifth largest business globally by sales behind Australia, the US, UK and Canada.
“Executive travel and travel managers are profitable businesses, generating earnings before interest, tax, depreciation and amortisation in excess of NZ$3 million (US$2.2 million) annually, with solid growth trajectories and good track records of success,” Turner said in a press statement.
This latest announcement comes back off the company’s recent acquisition of BHMAsia in Asia and Olympus Tours in Mexico.
Representing FLT’s first acquisition in the home-based sector, TMG provides systems and support services to a network of more than 180 individual brokers, as well as a 22-shop franchise network, which includes 12 TravelSmart shops and 10 non-branded stores. It was established in 2002 and generated about NZ$120 million in total transaction value (TTV) during its 2017 year.
EMG, established in 1978, is the largest independent corporate travel management firm in New Zealand and generated about NZ$60 million in TTV during the 2016 calendar year.
Both businesses were privately owned, with former FLT New Zealand employee Kevin Weston co-owning ETG and being a major shareholder in TMG.
Weston and his business partners, Nicola Jamieson and Dave Wallace, will continue to oversee both businesses’ day-to-day operations and will report to FLT New Zealand managing director David Coombes.