CWT snaps up TQ3Navigant for USD510m

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28/04/2006

CWT snaps up TQ3Navigant for USD510m

Carlson Wagonlit Travel (CWT) has bought TQ3Navigant (Navigant) in a USD510 million all cash deal it claims will see it become the number one travel management company outside of North America.

The deal, which has been approved by the boards of both companies and is expected to be completed in the second half of this year, doubles the size of CWT in North America and expands its reach throughout Australia and New Zealand.

CWT is to acquire all outstanding shares of TQ3Navigant for USD16.50 per share which represents a premium of 25 per cent over the closing price of USD13.20 per Navigant share on April 26. The aggregate value, including the assumption of debt, is around USD510 million.

As a result of the transaction it is estimated CWT will generate annual gross volume in excess of USD26 billion and net revenues of more than USD1.6 billion, based on 2005 results.

In a related move, the Accor Group has sold its entire 50 per cent interest in CWT for USD465 million to Carlson Companies and One Equity Partners, a private equity affiliate of JPMorgan.

Accor and Carlson had each owned a 50 per cent interest in CWT since 1997.

As part of the transaction however, Accor and CWT have signed a three-year, renewable partnership to secure preferred distribution of Accor hotels by CWT. And, at the same time, Accor has confirmed CWT as the group’s preferred travel agency.

CWT president and CEO Hubert Joly will continue in his role, while Navigant chairman and CEO Ed Adams will leave once the merger is complete, having spent 27 years in the travel industry.

Navigant chief financial officer and chief operating officer Bob Griffith will take on a new role as vice-president within the combined company.

28 April 2006

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