Press Release
BCD takes over business travel companies TQ3 and The Travel Company
Zeist, The Netherlands, January 3, 2006
Two acquisitions
BCD Holdings N.V. (BCD) has come to an agreement with the German travel concern TUI AG on the take-over of the latter's international corporate travel company TQ3 Travel Solutions Management Holding GmbH (TQ3). Expectations are that the agreement will be formally concluded at the end of the first quarter of 2006, subject to regulatory approval.
In addition, BCD has reached an agreement to increase its minority stake in the British corporate travel enterprise The Travel Company (TTC) to a majority share, simultaneous with the closing of the TUI transaction.
BCD subsequent to the acquisitions
In acquiring TQ3 and TTC, BCD's total sales volume will increase from currently almost U.S.$ 5 billion to U.S.$ 9 billion in 2006, a growth of approximately 80%. This amount excludes the sales volume of U.S.$ 1.6 billion generated by the 52 franchise travel companies
in the U.S.A.
BCD's EBITDA, amounting to more than U.S.$ 90 million in 2005, is expected to increase considerably in 2006 as a result of the acquisitions. To date, 80% of BCD's corporate travel sales is generated in the U.S.A. The two acquisitions will change the proportions to 55% from the U.S.A. and 45% from the rest of the world.
Following the take-over of the two companies, the number of employees at BCD will rise from 8.000 to more than 13.000. BCD will be located in 23 countries on 5 continents. Although a strong presence will be maintained in the U.S.A., BCD will now also become a substantial player in, amongst others, the Benelux, Germany, Britain, Scandinavia and the Far East.
In the Netherlands, as a result of the acquisition of TQ3's activities there, the sales volume of BCD's corporate and leisure travel companies (Airtrade, Vliegwinkel, VakantieXperts, WorldTravel BTI) will increase from the current € 400 million to more than € 725 million in 2006.
The TUI transaction does not include any other affiliates of the TQ3 Travel Solutions network or any ownership in this network. Upon completion of the acquisition of TQ3, the TQ3 brand name will be abandoned by BCD Holdings.
Management
BCD's new corporate travel company will be led by an international Board under the chairmanship of the CEO of BCD, Mr. Joop Drechsel. The other members, whose names shall be made known at the end of the first quarter of 2006, will come from the U.S.A., South America, Europe and the Far East. Mr. Mike Buckman, at present CEO of WorldTravel BTI in the U.S.A., will become the global CEO of the new company. Mr. Marc Hildebrand, at present CEO of TUI's corporate travel businesses, and Mike Walley, the CEO of the Travel Company will remain in key executive roles in the new company.
Global player
In merging BCD's current WorldTravel BTI corporate travel companies with TQ3 and TTC under the leadership of one management team, a new top organization in the field of corporate travel will be created with locations in every important business center on five continents implementing identical technology worldwide. To quote John Fentener van Vlissingen, Chairman of BCD Holdings N.V.: "One Company, One Management, One Technology".
During or shortly before the formal closing at the end of the first quarter of 2006, BCD will announce the new brand name under which the corporate travel company will operate.
Earlier today, BCD and the British corporate travel company Hogg Robinson, each holder of 50% of the shares in the international corporate travel alliance Business Travel International (BTI), announced that, henceforth, they would be pursuing independent strategies. Mutual BTI customers will, of course, continue to receive the same superior service they have grown to rely on and all contractual obligations will be honored.
End of press release
For further information, contact:
BCD Management B.V.
Mario Bruna
Utrechtseweg 67
3704HB Zeist
tel: +31 30 6976140
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