SYDNEY, AUSTRALIA: Helloworld Travel Limited has announced its agreement to purchase a 40% stake in the Adelaide-based travel agency business, Phil Hoffmann Travel (PHT).
Established in 1990 by Phil Hoffmann, PHT is a successful retail travel agency that operates in the leisure and corporate sectors across South Australia with nine locations and over 150 personnel. The company has been recognized as the Best Retail Travel Agency 12 times at the National Tourism Industry Awards since 1994.
PHT has been an Associate Member of Helloworld Travel since 2014. The acquisition will be funded from HLO’s existing cash reserves, with HLO acquiring 40% of the business from Phil Hoffmann, including an option to purchase the remaining 10% of his shareholding within the next three years, while CEO and Director Peter Williams will retain his shareholding in the business.
The acquisition is expected to be earnings accretive in FY24 and beyond, with the consideration representing an FY23 EBITDA multiple of approximately six times forecast earnings for PHT.
Andrew Burnes AO, CEO and Managing Director of Helloworld Travel Limited, expressed his excitement about the partnership and acknowledged the vast knowledge of leisure and corporate travel customers in South Australia possessed by Phil Hoffmann and Peter Williams. Phil Hoffmann also expressed his satisfaction with the new partnership between PHT and Helloworld Travel, which he views as an exciting opportunity for the brand to continue its growth and development.