The Flight Centre Travel Group (FLT) has signed a preliminary agreement to acquire a corporate travel management business in Mexico.
The legally non-binding agreement, which is subject to further due diligence and ratification by the FLT board, relates to Mexico City-based Koch Overseas de Mexico.
Koch has operated in Mexico since 1950 and employs more than 100 people in its offices in Mexico City, Monterrey, Puebla and Cancun.
The business is closely aligned to FLT and is currently part of the global FCm Travel Solutions network, which FLT created in 2004.
“We know the business and its people well, given that Koch has operated successfully as an independent FCm licensee since 2006, and believe it will be a great addition to our network,” FLT managing director Graham Turner said.
“Having a company-owned presence in Mexico is a natural extension of our business in North America, which now includes more than 550 shops and businesses in the United States and Canada, and will provide a springboard for further growth in the region.” – Graham Turner
Subject to conditions, the deal is expected to complete during the next few months with the FCm Mexico business expected to contribute a small profit to FLT’s 2015/16 results.
The acquisition price has not been disclosed. Both the acquisition price and the business’s anticipated results are not material to FLT.
FLT now has about 2800 shops and businesses in Australia, the United Kingdom, the United States, Canada, South Africa, New Zealand, Singapore, mainland China, Hong Kong, India, Ireland and the United Arab Emirates.
After starting as a leisure travel agency, the company is now also one of the world’s largest corporate travel managers through a network of specialist brands that includes FCm, Corporate Traveller, cievents, Campus Travel and Stage & Screen.
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