WASHINGTON -- Global Vacation Group, which is leading a wave of
tour operator consolidations, filed with the Securities and
Exchange Commission for an initial public offering of common stock.
The number of shares to be sold and the date of sale have not
been determined, but in a prospectus, the company said it expects
to raise at least $48 million.
Global Vacation, which purchased Allied Tours, Haddon Holidays,
Classic Custom Vacations, MTI Vacations and Globetrotters this
year, said in the prospectus that it intends to market with two
brands, one concentrating on upscale customized vacations and the
other on "popular-priced" packages. The names of those two brands
were not identified.
The prospectus states that Thayer Equity Investors, the
investment firm that founded Global Vacation, acquired Allied Tours
in a recapitalization that included, among other things, a $24.7
million payment to Allied's owners.
The company spent $57 million on the other acquisitions: $8.1
million for Haddon Holidays, $17.1 million for Classic, $26.4
million for MTI and $5.4 million for Globetrotters. The five
companies had combined sales of $507 million in 1997.
The prospectus also states that Global Vacation has an agreement
with Trase Miller Solutions, a travel technology company based in
Oak Brook, Ill, to handle the outsourcing of information systems
and act as a service bureau.
Sometime in 1999, the companies acquired by Global Vacation are
expected to share the same information technology system developed
by Trase Miller.
The prospectus outlines a strategy that Roger Ballou, the former
Alamo and American Express executive who is chairman and chief
executive officer of Global Vacation, has sketched in the last few
months.
The company's distribution channel will be travel agents, with
strong ties to select agencies and consortia, but Global will
pursue marketing opportunities in other channels.
"[To] reach travelers who prefer to purchase leisure and travel
products and services on the Internet, the company has developed
relationships with several Internet companies to market its
products and services on their Web sites or provide links to the
company's Web sites," the prospectus said. "The company expects the
Internet will develop into a significant distribution channel for
its products and services."
The prospectus also outlines a strategy for more
acquisitions.