Travel & Transport Acquires Ultramar, Creating TMC Giant
by Fred GebhartThere’s a new TMC giant on the block. In one of the largest industry consolidations in recent memory, Travel and Transport has acquired 100% of Ultramar. The CEOs of the two companies said the acquisition would create “ a true game changer for the industry.”
The combined $2.5 billion company appears to be the 11th largest TMC in the U.S., ranking between Flight Centre USA and Travel Leaders Group.
“This could be the first shot in a new round of midmarket TMC consolidation,” said an industry insider who asked not to be identified. “We are going to see more mergers and acquisition activity over the next year or so.”
There is plenty of room for consolidation. Direct Travel CEO Ed Adams told Travel Market Report last year that the four mega TMCs, American Express, Carlson Wagonlit, Hogg Robinson and BCD Travel, represent barely 25% of the industry. (See “Q&A: Directravel’s Adams Cites Market ‘Void’ in Acquisitions Drive,” Oct. 24, 2011.)
Retaining brand identities
Travel and Transport, based in Omaha, Neb., has about 1,000 employees and total sales in excess of $2 billion. Ultramar, based in New York, has about 270 employees and $500 million in sales. T&T acquired 100% of Ultramar in an all-cash transaction. The sales price was not made public.
Ultramar staff will join T&T, but both companies will retain their distinct names, brand identities, technology platforms and client bases for now. The Ultramar executive team will remain in place for at least five years.
Predicts accelerated growth
“We have always respected Ultramar as a competitor and knew that its strengths in the marketplace would be a perfect complement,” said Bill Tech, president and CEO of T&T.
“By preserving those strengths and maintaining Ultramar’s leadership and operations as we combine our financial bases along with our respective areas of expertise, we believe we are setting the stage for accelerated growth for both sides of the organization.”
Similar cultures
Ultramar president and CEO Peter Klebanow was equally upbeat.
“When Travel and Transport approached us, we immediately recognized that the proposed alignment was a perfect fit. Like Ultramar, Travel and Transport has always been a customer-first, global service provider, not just a transaction factory.
“This combination of two similar cultures, while retaining our strong individual brands, represents the best-possible set of elements to ensure success for years to come.”
A T&T spokesman said there are no plans to eliminate staff following the acquisition.
Ultramar employees will retain their current compensation and benefit packages for a year, then become employee-owners by joining T&T’s stock ownership program. The acquisition moves T&T into the top 100 employee stock ownership plan companies (ESOP) in the U.S., based on employee head count.
Global partnerships
The two companies have partnered with other TMCs around the world to extend their reach beyond the U.S. to service their global customers. T&T has played a major role in RADIUS and Ultramar has been a key player in GlobalStar.
Both Tech and Klebanow have spent about a decade as chairs of their respective networks.
At some point, the combined companies will have to come up with a combined global solution—the bylaws of both RADIUS and GlobalStar require members to choose one or the other. The combined company could also decide to strike out on its own with a new network.
“Over the next year, we will closely review and determine the best course of action in terms of selecting a global solution that makes the most sense for all of our current and future global customers,” Tech said in a news release announcing the Ultramar acquisition.
“Meanwhile, it is important to point out that each company’s global customers will continue to be protected under the rules and regulations that currently govern RADIUS and GlobalStar.”

