By Nadine Godwin
NEW YORK -- American Express agreed to purchase
Philadelphia-based Rosenbluth International, a move that will
combine the No. 1 and No. 5 U.S.-based travel agencies for a total
global travel volume of nearly $20 billion. Terms of the pact were
not released.
The deal is expected to close in the next few months, pending
regulatory approvals in the U.S. and Germany, said Ed Gilligan,
group president for American Express Global Corporate Services.
After that, the Rosenbluth name will disappear from this arena;
however, a separate company, Rosenbluth Vacations, continues in
business and is not part of this sale.
Hal Rosenbluth, chairman and CEO of Rosenbluth International,
said he will be deeply involved in facilitating a smooth
integration of the two businesses to ensure clients and staff
satisfaction, and he will "share insights" with American Express
management.
He said he will "stay for the period of time that is needed,"
and at some point, he will "ride toward the sunset," referring
literally to his beloved ranch in North Dakota.
Alex Wasilov, Rosenbluth president, said he will be focused on
assisting with the integration, client retention and "building out
our new solutions." As to his future in the merged business, he
said, "we are a long way from determining how that plays out for
me."
When asked if the merger will lead to staff layoffs, Charles
Petruccelli, president of global travel services at American
Express, said he couldn't be definitive about guaranteeing jobs,
but "both companies are focused on the customer, and we still need
people to do that." Rosenbluth added that there could be staff
additions during the transition because both companies keep winning
new contracts.
Petruccelli said, "Adding Rosenbluth talent and resources helps
us to find new ways to serve clients [while being] more efficient,
and it keeps the business strong and vibrant."
The Rosenbluth business has been handed down from generation to
generation for more than 100 years.
Rosenbluth said he was en route today to Linton, N.D., to meet
with staff in the Rosenbluth call center there. He said these
employees "will be positively impacted" by the move.
In the American Express deal, the purchase involves all shares
of the Rosenbluth corporate travel agency, but it excludes all of
Rosenbluth's overseas joint ventures and Up/Stream, the division
that provides fulfillment services to the likes of Orbitz,
Travelocity and others. As a result, three call centers in North
Dakota, one in Kentucky and one in Virginia are not affected by the
sale.