Rosenbluth Acquires Boston's Aquarius

<B> Rosenbluth Acquires Boston's Aquarius</B>

By Sarah Welt

<I>Philadelphia</I> - In the latest entry in the ongoing mega-agency acquisition story, Rosenbluth International last week acquired Aquarius Travel of Cambridge, Mass. The move follows the purchase of Travel One by American Express (<I>BTN,</I> Oct. 26, 1998), the numerous Navigant International acquisitions of super-regional agencies, and the WorldTravel Partners-BTI Americas merger.

The acquisition of Aquarius, a $200 million air-volume agency, is just the beginning for Rosenbluth International. Said president and CEO Hal Rosenbluth, "We are looking for good buys where there is a solid base of business, good people and good clients. There are a number of discussions going on." In addition to domestic agencies, "this year we will make acquisitions most likely in Spain, Italy and Latin America," he said.

Like the other regional agencies that have sold out in a year of drastic change in the distribution system, Aquarius found it becoming increasingly obvious that the agency would need greater size and clout, and "it was clear that wasn't happening fast enough," said president and CEO Domenic Pugliares. After unsuccessfully looking for other agencies to acquire, he "wanted to make sure I protected my employees and clients by finding an organization that fit hand-in-glove with us." The deal also gained Aquarius access to Rosenbluth's numerous technology offerings.

Hal Rosenbluth said the Aquarius buy was not part of a strategy to grow its business in the middle market, as American Express did with its recent American Express One launch.

"I don't believe in American Express's strategy," he said. "They are segmenting the market and we don't do that."

Consultant Tom Wilkinson, president of the Alexandria, Va.-based Travel Management Group, said the acquisition of Aquarius will "really help Rosenbluth in override negotiations,"and give it a ready-made customer base for its technology products in the competitive and close-knit New England market.

Meanwhile, Pugliares has signed a "long-term contract" to remain at the agency, and report to Rosenbluth's Northeast region vice president Ron DiLeo.