The Company Dime - CTM to Acquire Travel and Transport

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CTM Agrees To Acquire Travel And Transport By Jay Campbell • September 28, 2020
 Australia-based Corporate Travel Management is buying Travel and Transport of Omaha, Neb., for roughly $200 million in cash and stock. Much of Travel and Transport's senior executive team will run CTM North America after the deal closes, which is expected in the next 30 days or so following customary regulatory review. During an exclusive phone interview Monday evening, the companies' top execs said the firm would become the fifth- largest travel management company in the world. Combined 2019 travel sales were more than $7 billion, including more than $3 billion in the United States. CTM, which is publicly traded, is raising about $300 million from existing shareholders to make the acquisition. It could make additional deals, according to managing director Jamie Pherous. Nearly $4 million worth of the purchase price represents CTM shares distributed to Travel and Transport employees. "There are no assets in a professional services business like this, so it's really important for our businesses not to have any debt," said Pherous. "That both of us did not puts us in this position." "We didn't come into the year thinking we'd sell Travel and Transport," said Kevin O'Malley, T&T's chairman and CEO. "Then Covid hit, and we started looking at the landscape. We didn't have to sell. We were in good financial shape and continue to be. Our board talked and we thought about finding the right fit." They said CTM had been courting T&T for six years. "We always respected them as a competitor," said Pherous. "It was always difficult to win from them." "Jamie was the first person we reached out to," said O'Malley. "We got into a deeper conversation over the past few months. We were not in financial distress by any stretch, but to think about how to come out stronger was hugely appealing." Travel and Transport is an employee- owned company, meaning its Employee Stock Ownership Plan trustee, GreatBanc Trust Co., oversaw the process and then voted on behalf of employees. CTM appears to be doing better than many travel management companies, thanks partly to exposure to clients in essential services. The company also implemented "swift downsizing" after the pandemic hit, REPRINT 1 COPYRIGHT 2020 • B2B REPORTER LLC Republished with permission from The Company Dime

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