Carey International Announces Major Expansion in Europe
30 August 1999
Carey International Announces Major Expansion in Europe: Company Makes Four Acquisitions and Expands Service Capabilities in Paris and London
WASHINGTON, D.C.--Aug. 30, 1999--Carey International, Inc. today announced that it has acquired Allied Travel France of Paris and has entered into agreements in principal to acquire two French chauffeured services companies.The three companies combined will represent approximately $22 million in annualized revenues.
Founded in 1964 and acquired in 1989 by the Hensley family, Allied is one of Europe's premier destination management companies, specializing in corporate conferences, seminars, product launches, and incentive travel throughout France and Monaco. Allied has developed significant marketing relationships with many of the large and established meeting and incentive companies as well as the premier meeting planners in the United States, Canada, and Europe.
Vincent A. Wolfington, Chairman and Chief Executive Officer of Carey International, said, "These acquisitions strategically position Carey to capitalize on the strong, current demand for the types of corporate services provided by Allied in Paris, the second largest travel gateway in Europe. Our proven model for delivering these services domestically is equally applicable in European markets such as Paris, and we see tremendous opportunity to succeed in international markets by leveraging our favorable brand recognition and substantial U.S. customer base. The five-fold increase in revenue at our London operations, acquired in 1996, underscores the potential of this international strategy.
"Allied represents a particularly attractive acquisition for us in the Paris market as we not only expand our scope of services in the market but gain additional management expertise in Europe. Together, Jim and Michele Hensley have over 40 years of experience in the European corporate services sector."
James and Michele Hensley of Allied, stated, "We have successfully worked with Carey in the past and are delighted to join with a company that shares our emphasis on providing exceptional customer service. The integration of Allied's services with Carey will enable us to expand our sales capacity in the United States and strengthen our service capabilities throughout France. Furthermore, by joining Carey, Allied will have access to greater resources, a strengthened customer base, and state-of-the-art technology that will allow us to expand our business throughout Europe."
Carey also announced today the expansion of its services in London, England. The Company acquired Connect Chauffeur Drive, a Heathrow Airport-based chauffeured transportation company. It also entered into an agreement with Two Flags Excellence Limited under which Two Flags will provide exclusive "meet-and-greet" services to Carey's clients before they enter customs at London's Heathrow and Gatwick Airports.
Commenting on Carey's recent activities in England, Don R. Dailey, President of Carey International, said, "By acquiring Connect Chauffeur Drive and entering into the agreement with Two Flags, Carey has significantly enhanced its service levels in London and strengthened its position as the dominant provider of chauffeured vehicle services in England. Connect Chauffeur Drive is a strategic `tuck-in' acquisition which increases our service capacity at Heathrow Airport. Moreover, our exclusive agreement for `airside meet-and- greet' services greatly enhances the distinctiveness of the `Carey Experience' by giving us an unmatched ability to escort our clients quickly and efficiently through the airport upon arrival in London."
Carey International is the world's largest chauffeured vehicle services company. The company provides chauffeured sedan, limousine, van and minibus services through a worldwide network of owned and operated companies, licensees, and affiliates serving 420 cities in 65 countries.
The information set forth above contains forward-looking statements, which involves risks and uncertainties. The Company's actual results could differ materially from the results anticipated in these forward-looking statements. Readers should refer to discussion under "Risk Factors" contained in the Company's Registration Statement on Form S-1 (No. 333-59599) filed with the Securities and Exchange Commission, which is incorporated herein by reference, concerning certain factors which could cause the Company's actual results to differ materially from the results anticipated in the forward-looking statements contained herein.