Anglo-Dutch travel management company ATPI Group is gunning for more business in the United States and parts of Asia after acquiring Griffin Group for an undisclosed sum. Like ATPI, U.K.-based Griffin has an international network (33 offices, which are wholly owned in 13 countries and operated through joint ventures in another nine), but is focused on midmarket clients. Both companies, especially Griffin, also specialize in marine and offshore travel. ATPI's 2013 gross sales exceeded £720 million in 2013, but the company expects 2014 sales to hit £1.2 billion as a result of organic growth and the purchases of Griffin and Australian independent TMC Voyager Travel earlier this year.
Financial terms of the acquisition, which was announced Monday, were undisclosed.
ATPI CEO Graham Ramsey told BTN the acquisition of Griffin will lead to marine and offshore accounts comprising a higher proportion of total ATPI business. However, he added: "Strategically, I needed to strengthen in several geographies. We bought Voyager because we didn't have good coverage in Australia, but a further weakness was the U.S., and we were under-strength in China, Hong Kong and Singapore. Rather than buying four or five companies in those jurisdictions, we've covered them all in one go. Griffin is a size of business that makes a real difference to ours. It is significantly stronger than we are in the U.S., which accounts for 28 percent of its sales, and it has a very successful joint venture in China. We are looking after existing clients, but we weren't strong enough to go out and win new business in those geographies."
The acquisition takes ATPI's footprint of wholly owned and joint-venture offices to just over 100 worldwide, but Ramsey said he is still not tempted to chase major corporate customers. "The market we're interested in is midmarket, especially where we can really understand the sector they work in," he said. "I'm not interested in Coca-Cola or in tiny SMEs."
ATPI is not planning any further major acquisitions but Ramsey said he is considering opening more offices in the United States. The company in 2013 completed a third management buyout in six years. Its acquisition of Griffin was backed by specialist asset management company Intermediate Capital Group, which owns 50 percent of ATPI.