Corporate Travel Management has acquired a
majority stake in Hong Kong-based Lotus Travel Group in a deal
worth AUD50 million (HKD300 million).
The purchase of 75.1% of Lotus will take
effect from 2 October 2018 and will result in CTM becoming one of the
largest travel management companies in Hong Kong servicing Greater
China, with a combined Total Transaction Value approaching AUD2.5
billion (HKD15 billion).
CTM’s partners in Asia, Ever Prestige
Investments Limited (EPI), will acquire the remaining 24.9% through CTM Asia.
CTM Managing Director Jamie Pherous (pictured) said the two
firms had a great understanding of each other’s culture and
leadership teams, which would allow for a seamless integration
“Lotus is a long standing and highly regarded
travel leader in Hong Kong,” he said. “They meet our strict
acquisition criteria and, like CTM Asia, are leaders in travel in
the region and enjoy high client and staff retention. We are delighted to have Lotus become a key
part of our Asian business. Together, we will become a leader in
the Greater China market and will be well positioned to enhance
our client offering, technology and expertise in this market.”
Having operated for more than 60 years, Lotus is
a market leader in Hong Kong across the corporate, B2B, wholesale
and MICE markets. It employs 400 staff and has offices in Hong
Kong and Greater China.
Chairman and CEO of Lotus, Patrick Kong, said,
“We have known the CTM Asia leadership team for many years and
have watched CTM Asia build a very strong growth business based on
highly personalised service delivery with best-in-class technology
solutions. We consider that CTM is an excellent fit to
enhance our service offering to both current and future clients,
while providing exciting new career opportunities for our
employees that comes through growth.”
The acquisition will contribute approximately
AUD4 million (HKD24m) earnings before interest, tax, depreciation
and amortisation (EBITDA) over nine months trading to CTM’s 2019
Mr Pherous said that CTM is expected to deliver FY18
results at or slightly above the top end of the previous guidance,
at approximately AUD125m (27% growth on p.c.p).
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