HONG KONG, 12 July 2018: Corporate Travel Management continues its expansion in the Asian market by acquiring a majority stake in Hong Kong’s Lotus Travel Group in a deal worth AUD50 million (HKD300 million).
The purchase of 75.1% of Lotus stock will take effect 2 October, the company reported in a statement released Wednesday.
It will result in CTM becoming the largest travel management company in Hong Kong serving Greater China, with a combined total transaction value approaching AUD2.5 billion (HKD15 billion).
CTM managing director, Jamie Pherous said: “Lotus is a highly regarded travel leader in Hong Kong. We are delighted to have Lotus become a key part of our Asian business. Together, we will become a leader in the Greater China market.”
In business for more than 60 years, Lotus is a market leader in Hong Kong across the corporate, B2B, wholesale and MICE market segments.
It employs 400 staff and has offices in Hong Kong and Greater China.
Chairman and CEO of Lotus, Patrick Kong said: “We have known the CTM Asia leadership team for many years and have watched CTM Asia build a very strong growth business based on highly personalised service delivery with best-in-class technology solutions.
“We consider that CTM is an excellent fit to enhance our service offering to both current and future clients, while providing exciting new career opportunities for our employees that comes through growth.”
The acquisition will contribute approximately AUD4 million (HKD24 million) earnings before interest, tax, depreciation and amortisation (EBITDA) over nine months trading to CTM’s 2019 annual results.
Pherous said CTM expected to deliver financial year 2018 results at, or slightly above, the top-end of the previous guidance, at approximately AUD125 million.
Headquartered in Australia, the company employs approximately 2,700 staff globally (including Lotus).