15th Feb 2007 16:00
Hogg Robinson Group PLC15 February 2007 15 February 2007 Hogg Robinson Group plc ("HRG" or "the Group") HRG increases North American presence through acquisition of Executive Travel Associates Hogg Robinson Group plc, the international corporate services company, announcesthat it has today acquired the business of Executive Travel Associates ("ETA"),a specialist US corporate travel firm based in Washington DC, for a cashconsideration of US$7.7m. Further cash payments up to a maximum of US$4m may bepayable to ETA over the next three years subject to the business achievingcertain performance targets. ETA provides highly tailored and flexible programmes to a client portfolio ofprofessional companies, executive groups and government related departments whoseek exceptional service in the 'high touch' end of managed corporate travel.Under the leadership of an experienced management team led by CEO Ray Pierce,who has over 25 years experience in the corporate travel industry, ETA hasachieved consistent growth and a client retention profile very similar to HRG's. It is intended that ETA will continue to operate autonomously but will report toHRG's North American Division, headed by Regional President, Tom Gleason. At the time of its IPO in October 2006, HRG stated its intention of expandingand strengthening its North American operation. The acquisition of ETA adds tothe Group's owned presence in the USA following its purchase of Sea Gate TravelGroup (April 2005) and Robustelli World Travel (February 2006). Together withHRG's operation in Canada, both Sea Gate and Robustelli are now fully integratedand trading as HRG North America with a workforce of approximately 1,600. David Radcliffe, CEO of Hogg Robinson Group, said: "I am delighted to announce our acquisition of ETA today. ETA's culture of highclient retention and exceptional service has great synergies with HRG. Acquiringan additional base in North America, particularly in one of the country'sleading business centres, strengthens significantly our presence in the regionand is core to our growth strategy. We are fortunate to have acquired a businesswith the calibre of Ray Pierce and his team and I look forward to the benefits Iknow they will bring to the Group." Ray Pierce, CEO of Executive Travel Associates, said: "My colleagues and I are delighted to be joining the Hogg Robinson Group. ETA isa business that has been built on providing an extremely high quality service toits clients by a dedicated and highly professional group of employees. As aresult, we have a loyal portfolio of clients and members of staff who have beenwith ETA for many years. "ETA continues to be a very successful company but we have reached the stagewhere we need to broaden our horizons to service better our clients' expandingneeds. As part of HRG, ETA's clients will now have access to a worldwide networkwhich has proven international expertise, advanced technology solutions and arange of services which bring real value to clients corporate travelexpenditure. HRG has a very warm culture which mirrors that of ETA. This willnot only ensure that the ETA professionals are comfortable with our newownership but that we embrace the new opportunities presented to us." Enquiries Hogg Robinson Group +44 (0) 1256 312 600David Radcliffe +44 (0) 1256 312 602John Kennerley +44 (0) 1256 312 610Jacqui Higgs +44 (0) 1256 312 619 Bell Pottinger Corporate & Financial +44 (0) 20 7861 3232Nick Lambert / Andrew Benbow Further information About Hogg Robinson Group plc * Hogg Robinson Group is an award-winning international corporate services company providing a range of services which add demonstrable value to its corporate clients' travel expenditure. These services include Corporate Travel Management, Consulting, Expense Management, Events & Meetings Management, and Sports. HRG targets the international and national managed sector, where clients require a range of globally-integrated and tailored travel and expense management services. * Managed clients tend to be multinational companies ("MNCs") or large national companies which are characterised by having substantial corporate travel expenditure which results in them wishing to manage travellers and expenditure actively and centrally. HRG also provides services to small and medium sized enterprises, which are a significant market for the company in certain countries. * Hogg Robinson Group's growth strategy focuses on achieving increased customer penetration, entry into new markets and increasing its range of services, and developing new higher margin services for large MNCs which are attracted to HRG's offering of managed corporate travel programmes. * Hogg Robinson Group provides three broad types of services to its clients: - Transaction processing - principally flight and hotel bookings; - Travel management services - the overall management of a client's travel programme, including data management, corporate travel policy compliance monitoring and technology solutions; and - Corporate spend and events management - consultancy services and expense management solutions (including on-line through "Spendvision") and the management of corporate events and sports travel programmes. These services are typically provided pursuant to three to five year termcontracts. * Hogg Robinson Group has its headquarters in the UK and principally operates in the European, North American and Asia-Pacific regions. It has nearly 7,000 employees, with 4,800 located in Europe, 1,600 in North America and 550 in Asia-Pacific * Hogg Robinson Group has a global network designed to provide a seamless service to its clients under a single brand. The network operates in 96 countries of which Hogg Robinson Group has owned or controlled operations in 24 countries and a contracted partner network in a further 72 countries. Hogg Robinson Group has a long-established working relationship with the large majority of its contracted partners * For the six months to 30 September 2006, Hogg Robinson Group reported sales of £149.2m and EBITA of £15.1m. This announcement may contain forward-looking statements with respect to certainof the plans and current goals and expectations relating to the future financialconditions, business performance and results of HRG. By their nature, allforward-looking statements involve risk and uncertainty because they relate tofuture events and circumstances that are beyond the control of HRG, includingamongst other things, HRG's future profitability, competition with the marketsin which HRG operates and its ability to retain existing clients and win newclients, changes in economic conditions generally or in the travel and airlinesectors, terrorist and geopolitical events, legislative and regulatory changes,the ability of its owned and licensed technology to continue to servicedeveloping demands, changes in taxation regimes, exchange rate fluctuations, andvolatility in the Company's share price. HRG undertakes no obligation topublicly update or revise forward looking statements, except as may be requiredby applicable law and regulation (including the Listing Rules). No statement inthis announcement is intended to be a profit forecast or be relied upon as aguide to future performance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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