CORPORATE Travel Management’s (CTM) acquisition of Platinum Travel Corporation in NSW and Queensland (TD breaking news) is part of a key strategy to expand its SME corporate and events operations.
The deal involves the purchase of SCT Travel Group Pty Ltd for $5 million, representing about a five times earnings multiple, via a mixture of cash and stock.
There’s also an additional earn-out component based on long-term growth for SCT founder Greg McCarthy, who established Platinum Travel Corporation alongside Melbourne-based Carl Buerckner more than eight years ago (TD 28 Oct 2009).
Platinum Travel Corporation is a member of the Magellan Travel Group with four offices in Melbourne, Sydney, Brisbane and in the NSW south coast hamlet of Gerringong, with the Vic part of the business run by Buerckner to remain with Helloworld.
It’s the second major Magellan member to be acquired by CTM, which also bought Tasmania’s Andrew Jones Travel (TD 14 Dec 2016) from MTG co-founder and chairman Andrew Jones.
McCarthy will join Corporate Travel Management as the company’s ceo for Australia/NZ, reporting to chief operating officer Laura Ruffles.
CTM noted that the deal included the acquisition of the Platinum Travel Corporation corporate and events businesses in Queensland and NSW only, and was being funded entirely from short term cash flow.
Source: traveldaily