FLT managing director Graham Turner says the acquisitions will strengthen FLT’s New Zealand operation, which is now the company’s fifth largest business globally by sales behind Australia, the USA, the UK and Canada. ‘Executive Travel and Travel Managers are profitable businesses, generating earnings before interest, tax, depreciation and amortisation in excess of $NZ3million annually, with solid growth trajectories and good track records of success,’ he says. ‘With their addition, Flight Centre New Zealand will go close to becoming a $NZ1.5billion-per-year sales company during the 2018 fiscal year (FY18). ‘ETG will enhance our already strong corporate travel offering in New Zealand and will give the business additional scale and expertise. FLT has previously flagged its intention to expand in the broker or home-based sector within its key travel markets globally as part of its ongoing leisure travel improvement strategies. TMG is the company’s first acquisition in the sector. Further expansion is planned via a combination of acquisitions in some countries and organic growth. Flight Centre NZ managing director, David Coombes, says the new partnership signals the start of an exciting growth phase for FCNZ. ‘We’ve been looking for a complimentary acquisition in the local market.’ 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. FLT has agreed to acquire 100% of both businesses and will use company cash to fund the acquisitions.
Flight Centre acquires Travel Managers Group, Executive Travel
Flight Centre Travel Group (FLT) will acquire two high profile New Zealand travel businesses. One is Travel Managers Group (TMG), a predominantly leisure-focused group that provides systems and support services to a network of more than 180 individual brokers. TMG also operates a 22-shop franchise network, which includes 12 TravelSmart shops and 10 non-branded stores. The other is Executive Travel Group (ETG), New Zealand’s largest independent corporate travel management company.