Travel management company Frosch Travel late yesterday announced it has completed the purchase of New York-based Linden Travel for an undisclosed amount. The deal broadens the Houston-based super regional's presence on the East Coast, where it already has offices in New York, Maryland, Pennsylvania and Washington, D.C.
With the Linden buy, Frosch now has more than $600 million in total sales volume, according to Frosch president Bryan Leibman. The TMCs are two of just 11 TMCs in
BTN's 2009 Business Travel Survey to show year-over-year ARC transaction increases. In 2008, Frosch processed 286,565 ARC transactions worth $220 million. Linden processed 58,264 ARC transactions worth $59.37 million. Frosch primarily handles accounts in the $5 million to $35 million total travel volume range.
Frosch's current New York branch will be consolidated into the much larger Linden office. Frosch has 800 employees in 44 branches in 12 states. At the end of 2008, Linden had 112 employees. Leibman said there are no plans to reduce the Linden workforce.
Former Linden owner Barbara Gallay remains president of the New York City office. The Linden name will continue to be used in the short term.
Technology integration is already underway. Frosch will convert the Sabre-exclusive Linden into a multi-global distribution system operation, in line with Frosch's other offices.
For its international business, Frosch is a member of the Global Specialist Markets travel agency partner network, which is made up of TMCs in more than 30 countries. Linden will shed its membership in the BCD Travel affiliate program, according to Leibman.
Frosch has seen acquisitions of primarily corporate agencies as part of its growth strategy for years. In 2007, the company purchased regional TMCs in California, Illinois and Pennsylvania
(BTNonline, Oct. 22, 2007). At the time, Leibman said the company had acquired 15 agencies since 2002.
Frosch's M&A activity has helped the company move up the rankings of
BTN's annual Business Travel Survey, which ranks participating TMCs based on their ARC transactions from the previous year. In this year's 43-agency survey, in which the mega and Internet TMCs did not participate, Frosch and Linden ranked tenth and 33rd, respectively.
While Frosch chairman Richard Leibman and Gallay have known each other since 1988, Bryan Leibman said the timing for a tie-up was right because of New York-based client requests for a larger presence in the city.
Some travel management company owners looking to sell their businesses have been reluctant to close the deal because of low offers. "Even in this climate, sellers are not wiling to sell at reduced prices," Bryan Leibman said. "If there is the opportunity to get fair value for their business, they are willing to do it. Those who are looking for fire sales or bargains are not going to find good companies."