News

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Directravel, a Portfolio Company of Silver Oak Services Partners, Completes Add-on Acquisitions

Apr. 23, 2014 -Portfolio Company News

Directravel, Inc. (“Directravel”), a portfolio company of Silver Oak Service Partners LLC, announced that is has acquired Travel Destinations Management Group (“TDMG”) and Caldwell Travel (“Caldwell”).

TDMG Acquisition

Travel Destinations Management Group, headquartered in Owings Mills, Maryland, is a privately owned, independent travel management company founded in 1970. TDMG has built a successful book a business with an account base ranging in size from small and midsize companies to Fortune 500 corporations.  TDMG has volume in excess of $100 million and services approximately 80 customers in the Baltimore area, with a focus on clients in the Pharmaceutical sector. TDMG’s divisions consist of Corporate Travel, Vacation Travel, Meetings and Incentives, and Trade Shows. TDMG provides travel and planning management services for accounts regionally, nationally and internationally, and has been rated as the best corporate travel agency in Baltimore for the past 7 years.

Reflecting on Travel Destinations Management Group’s 44 years in business, Ira Weiner, Owner and President, stated, “Directravel is a clear leader in the industry due to its deep industry experience, customer-focused service platform and employee programs. Becoming part of Directravel was a strategic decision to take the company to the next level and guarantee continued success.”

Directravel’s Regional President, Sam DeFranco, additionally commented, “We believe this is a partnership that will set our agency on a path to accelerated growth, with long-term benefits for clients, employees and shareholders. We are thrilled to welcome the Travel Destinations Management Group team into the Directravel Family.” DTI welcomes more than 80 employees as a result of the acquisition.

Caldwell Acquisition

Caldwell Travel was established in 1977 and has grown to be a leading travel management company in Tennessee. With business totaling $50 million in annual air volume, Caldwell Travel’s client base has been primarily located in the United States, providing services including: corporate travel management, groups, meetings and incentives, and leisure travel. Caldwell’s corporate clients include several publically traded healthcare companies, publishers, music industry record labels, manufactures, as well as smaller companies in various industries. Caldwell has unmatched stability in the travel industry with no turnover in management and an average tenure per agent of more than 10 years. Caldwell enjoys strong, long-standing relationships with its customers and is regarded as the one of the premier independent providers of travel management services in Nashville.

Reflecting on Caldwell Travel’s 37 years in the travel industry, William Caldwell, Owner/President, acknowledged the accelerated pace of change he has observed specifically over the past decade. “As companies of any size seek to grow and expand across borders, increased investment is needed to provide the level of technology and service clients and their travelers have come to expect”, stated William Caldwell. “The Caldwell Travel management team feels Directravel is best suited to deliver those capabilities over the long term,” he continued, “and of particular importance to us, Directravel’s proven track record with clients of all sizes and entrepreneurial spirit and innovation. We were attracted to Directravel specifically because of the long-held respect we’ve had for the organization as a competitor. I’m pleased we now have the opportunity to join forces for the mutual benefit of our collective employees and clients.”

“Caldwell Travel’s expertise at serving SME clients in the south will greatly benefit Directravel more broadly in this key market,” noted Ed Adams, CEO of Directravel. “I look forward to blending the Caldwell Travel team’s considerable industry expertise and customer focus with ours,” added Sam DeFranco, Directravel’s Regional President. “I am excited to bring together two companies intent on accelerating innovative solutions for our corporate travel customers and better differentiating us for success in a highly competitive industry. I would also like to personally welcome Directravel’s newest employees and clients to our organization.” Directravel welcomes more than 50 employees as a result of the acquisition.

With the purchases of Travel Destinations Management Group and Caldwell, Directravel not only expands its presence in the northeast and southern regions of the U.S. but also furthers its established growth strategy, which includes increase growth in the small and medium enterprise (SME) market and target acquisitions, along with sales to new and existing clients.

Overview of Directravel

Directravel is a leading provider of outsourced corporate travel management. The Company helps clients achieve lower corporate travel spend via management of travel policy, efficient booking, and identifying cost saving opportunities with suppliers while providing employees with a better travel experience.

Directravel employs over 350 travel professionals nationwide with 10 locations in Mahwah, NJ, New York City, Baltimore, MD, Scranton, PA, Chicago, IL, Milwaukee, WI, Minneapolis, MN, Nashville, TN, San Francisco and San Jose, CA.  Directravel is ranked among the top US corporate travel management firms.

Silver Oak and management continue to build the Directravel platform into a premier provider of corporate travel management services across the United States. The company has completed five acquisitions since its partnership with Silver Oak and continues to pursue add-on acquisitions of complementary businesses in attractive geographies.

Please contact Ed Adams of Directravel or Dan Gill or Andrew Gustafson of Silver Oak for additional information.

Silver Oak invests in business, consumer and healthcare services companies in the lower middle market, typically with EBITDA of $3 million to $20 million.