CTM takes over Redfern and Andrew Jones

BTN News
Thursday, 15 December 2016

Australian travel company Corporate Travel Management has acquired UK-based Redfern Travel and Tasmania-based Andrew Jones Travel.


The A$69.0 million acquisition of Redfern Travel will make CTM one of the top seven corporate travel management companies in the United Kingdom.


CTM managing director Jamie Pherous said the Redfern Travel transaction would allow CTM to build and leverage scale and is expected to take its consolidated European Total Transactional Value (TTV) to GBP500-550 million in the next financial year.


“Redfern Travel’s key competitive advantage is its proprietary, automated end-to-end system, which processes more than 95 per cent of all transactions online, creating a highly scalable operation,” said Pherous.
 
CTM says the A$5.6 million acquisition of 30-year-old Andrew Jones Travel will cement CTM as the second largest corporate travel management company in Australia, and allow the company to expand its position in the government and sporting industries.


“Andrew Jones Travel is a long-standing and well-regarded corporate travel company, and operates on the same core systems as CTM, allowing for seamless integration and synergy,” said Pherous.


“With its niche in national sporting bodies and government departments, and location in a valuable region for aquaculture and export, we are confident Andrew Jones Travel will easily integrate into CTM’s Australian network.”
 
Collectively, the two acquisitions are expected to contribute approximately A$7.0 million EBITDA from February to June, 2017. On an annualised basis, Redfern Travel and Andrew Jones Travel could contribute to CTM approximately A$17.0 million.


As a result of both performance-to-date and the projected impact of these acquisitions, CTM has raised its full year EBITDA guidance range to A$92-97 million.
The acquisitions will be funded by a fully-underwritten renounceable Entitlement Offer to raise approximately A$71.1 million. Eligible shareholders will be able to purchase one fully paid ordinary share for every 21 CTM shares that they hold on 19 December, 2016.

CTM takes over Redfern and Andrew Jones

BTN News
Thursday, 15 December 2016

Australian travel company Corporate Travel Management has acquired UK-based Redfern Travel and Tasmania-based Andrew Jones Travel.


The A$69.0 million acquisition of Redfern Travel will make CTM one of the top seven corporate travel management companies in the United Kingdom.


CTM managing director Jamie Pherous said the Redfern Travel transaction would allow CTM to build and leverage scale and is expected to take its consolidated European Total Transactional Value (TTV) to GBP500-550 million in the next financial year.


“Redfern Travel’s key competitive advantage is its proprietary, automated end-to-end system, which processes more than 95 per cent of all transactions online, creating a highly scalable operation,” said Pherous.
 
CTM says the A$5.6 million acquisition of 30-year-old Andrew Jones Travel will cement CTM as the second largest corporate travel management company in Australia, and allow the company to expand its position in the government and sporting industries.


“Andrew Jones Travel is a long-standing and well-regarded corporate travel company, and operates on the same core systems as CTM, allowing for seamless integration and synergy,” said Pherous.


“With its niche in national sporting bodies and government departments, and location in a valuable region for aquaculture and export, we are confident Andrew Jones Travel will easily integrate into CTM’s Australian network.”
 
Collectively, the two acquisitions are expected to contribute approximately A$7.0 million EBITDA from February to June, 2017. On an annualised basis, Redfern Travel and Andrew Jones Travel could contribute to CTM approximately A$17.0 million.


As a result of both performance-to-date and the projected impact of these acquisitions, CTM has raised its full year EBITDA guidance range to A$92-97 million.
The acquisitions will be funded by a fully-underwritten renounceable Entitlement Offer to raise approximately A$71.1 million. Eligible shareholders will be able to purchase one fully paid ordinary share for every 21 CTM shares that they hold on 19 December, 2016.