The Flight Centre Travel Group is set to acquire a corporate travel management business in Mexico for a non-disclosed amount after signing a preliminary agreement.
According to the company, the group penned the legally non-binding agreement, subject to further due diligence and ratification, in relation to acquiring Mexico City-based Koch Overseas de Mexico.
The business has been part of the global FCm Travel Solutions since 2006, and has been operating in Mexico since 1950 employing more than 100 people in offices across Mexico City, Monterrey, Puebla and Cancun.
FLT managing director, Graham Turner said to have a company-owned presence in Mexico was a “natural extension” of its existing businesses in North America, which now exceeds 550 shops in USA and Canada and “will provide a springboard for further growth in the region”.
“This also enhances our ability to compete for and win corporate travel accounts throughout the Americas,” Turner said.
The deal is expected to close over the next few months, and is expected to contribute a “small profit” to FLT’s 2015/16 results, the company said.
While the acquisition price was not disclosed, FLT said both the price and the business’s anticipated results “are not material to FLT”.
FLT now has 2800 shops and businesses across the globe.
