Chambers Travel Group’s parent company Corporate Travel Management is expanding its US footprint with the acquisition of California-based Montrose Travel.
The purchase is expected to make CTM one of the 12 largest travel companies in the US, just 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, with previous EBITDA guidance in the range of AU$61.3m-AU$63.8m.
This guidance reflects the continued execution of CTM’s strategy and a six month contribution from Montrose Travel of approximately AU$4 million to this financial year.
CTM founder and managing director Jamie Pherous said the acquisition 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,” Pherous explained.
“When we expanded into the United States in 2012, we made it clear that acquisition opportunities would be assessed to determine whether they showed cultural compatibility, integration simplicity and quality management.
“Montrose Travel epitomises that approach; it is an iconic business in California, operating for more than 60 years.
“They possess a capable and passionate management team, are leaders in travel in their region, enjoy high client and staff retention, and will have significant ownership in CTM via CTD stock.”