BY JENNIFER DORSEY
CHICAGO -- McCord Travel Management, a $440 million, mostly
corporate agency here, said it will acquire Los Angeles-based
Hoffman Travel, a $160 million agency known for its
entertainment-business clients.
The combination gives McCord a strong presence in the West, just
as its purchase 18 months ago of New York-based Zenith Travel, a
$120 million agency, established McCord firmly on the East
Coast.
Bruce Black, McCord's president and chief executive officer,
said, "Bringing Hoffman and its $160 million in business into the
McCord family of companies gives us a tremendous presence in three
of the major business markets in the country: Chicago, New York and
Los Angeles."
The combined organization, with $600 million in sales, ranks
among the 12 largest U.S. agencies, based on Travel Weekly's 1997
survey of the Top 50 Travel Agencies.
With the addition of Hoffman, McCord will have nearly 950
employees at 64 locations in Illinois, Ohio, New York, California,
New Jersey, Connecticut, Washington D.C., Virginia, Texas, Arizona
and Paris, France, plus more than 225 satellite ticketing
locations.
When the transaction is completed this month, Hoffman Travel
Service will become a wholly owned McCord subsidiary and continue
to use its own name. McCord retired the Zenith name, and it no long
appears on the firm's printed materials or signage.
Carol Dunn, Hoffman's president, will become a stockholder and
owner in McCord and will be president and general manager of what
McCord is calling its Entertainment and Western Region, which will
be based in Los Angeles and encompass states from the Pacific Ocean
eastward through Montana, Wyoming, Colorado and New Mexico.
Bill Wass, Hoffman's vice president of administration, will
become vice president of corporate services for the new
division.
Tom Stout, an owner of Hoffman with Dunn, will sell his interest
in Hoffman to McCord.
McCord said both companies serve clients with travel budgets
ranging from about $1 million to $30 million.
Some of Hoffman's clients include entertainment, professional
services, automotive and media companies, and McCord's client
roster includes companies specializing in advertising, banking,
entertainment, professional services, consumer products,
manufacturing and insurance.
Other recent McCord expansion moves include the purchase of a
minority stake in Value Integrated Network (VIN.net), a travel and
entertainment expense reporting software company.
McCord also purchased the assets of A Better Airfare and formed
McCord Consumer Direct in Newport News, Va., a subsidiary
specializing in direct-to-consumer marketing of travel.
To expand its leisure presence in the Chicago area, McCord
acquired Kenilworth Travel, a $5 million leisure-oriented agency in
Wilmette, Ill., and is recruiting associate agents, or independent
contractors, in its central and eastern region offices in Chicago
and New York, respectively.
Black said, "We have a clear-cut and, in many ways, non-linear
plan for strategic growth.
"By joining forces with Hoffman and through our past efforts,
McCord is better able to capitalize on the high impact forces
affecting the travel marketplace, while at the same time enhancing
the required capabilities that create outstanding results for our
clients."