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Queensland-based CTM acquires leading Asian corporate travel brand
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CORPORATE Travel Management (CTM) has made a strategic move into the East Asian travel market by acquiring one of the region's best-known brands, Westminster Travel, which has offices in Hong Kong, Singapore, China, Macau and Taiwan. 
Jamie Pherous.
CTM founder and managing director, Jamie Pherous, said the group's A$49.2 million purchase of 75.1 percent of Westminster Travel would become effective on January 31, 2014. The two current major shareholders of Westminster, which is listed on Singapore's Catalyst Exchange, Dato Wong Sin Just and Yu Kam Yee Lawrence, will retain 24.9 percent and remain active in the business following settlement. That stake is to be held by Ever Prestige, a special purpose vehicle jointly owned by Dato Wong and Mr Yu. Westminster Travel is a multiple award-winning pan-Asia travel management and services provider. Westminster started in Hong Kong and has been operating for 40 years, achieving compound annual growth in NPAT of 19 percent over the last five years. Mr Pherous, said the acquisition was a natural step to maximise regional business opportunities for both companies following several years of their respective management teams collaborating on networking clients and joint tenders together. "The acquisition of Westminster Travel fast-tracks our entry into the Asian travel market, delivering an immediate, mature footprint in five key countries and territories," Mr Pherous said. "After working with their management team for several years, it became clear to us that Westminster Travel possesses all of the qualities we look for - a highly experienced and passionate management team, a business culture which values its people and its clients, and new opportunities to grow together through a regional client offering." "Like us, Westminster Travel has been recognised by its industry as a leading provider in its region and has innovation as a core driver of the way it does business - evidenced by its focus on client-facing solutions created through in-house development platforms." Dato Wong said the move was a natural progression for Westminster Travel's growth. "For our business to continue to grow in the coming years, it was clear to us that we needed to have an international partnership in place," said Dato Wong. "The challenge was to find a company which not only held the same growth aspirations as ourselves, but which also placed a high value on its staff and exceptional customer service, and we have found that with CTM. "We have so much confidence in the opportunities ahead for our business that we have decided to retain an ownership interest, and we look forward to building and expanding the business together with CTM's management." This financial year Westminster Travel has had sales with an audited total transaction value (TTV) of about A$740 million, with an A$9.32 million EBITDA and an NPAT result of A$7.32 million. CTM has revised its 2014 financial year EBITDA guidance to $27.0m-$28.0m based on Westminster Travel's contribution for the five month period of February 2014 to June 2014, and CTM's execution in the Australia/New Zealand and USA operations continuing to trade in line with previous guidance. Morgan Corporate Limited and CIMB Bank Berhad, Singapore branch acted as joint financial adviser to CTM. CTM has been acknowledged by the Australian Federation of Travel Agents (AFTA) as the Best Corporate Agency in Australia eight times in the past 10 years and was inducted into AFTA's Hall of Fame in 2010 for continued excellence. CTM was the first Queensland Leaders member company to go through to listing on the Australian Securities Exchange and has since become a partner in the organisation that helps to foster the next generation of leading companies based in Queensland. Westminster Travel has been awarded as the Best Travel Agency in Hong Kong four times in the past six years. ends |
