Corporate Travel Management
(ASX:CTD) has entered binding contracts to acquire two travel businesses – Redfern Travel and Andrew Jones Travel.
Corporate Travel Management (CTM) will pay $69 million, in initial consideration, for Redfern Travel, who provides travel services to both corporate and government sectors in the UK.
CTM says the maximum consideration is capped at $86.2 million, depending on Redfern’s profitability.
As for Andrew Jones Travel, this business is based in Tasmania and services the corporate, government and sporting markets. CTM will pay $5.6 million for this acquisition.
These acquisitions will be funded by a $71 million capital raising, and CTM has confirmed that its FY17 underlying EBITDA guidance is between $92 and $97 million.
Corporate Travel Management posted a net profit of $45.7 million at 30 June 2016.