US SPECIALIST North America Travel Service has expanded its product range with the acquisition of rival Key to America.
NATS managing director Ed Button refused to say how much he had paid for Key to America, which will continue to be run as a separate brand, but the price is believed to be close to the £2m asking price.
The acquisition increases NATS’ capacity from 25,000 to 35,000. In addition, Button said he expects to expand Key to America by a further 25% next year.
Key to America, which currently has one main brochure, will introduce a new coaching programme and will expand its Caribbean programme. Both products will be featured in stand-alone brochures.
Button said the two companies will continue to run from their existing bases. NATS is based in Barnsley, Yorkshire, while Key to America operate out of office in Ashford,Middlesex.
Key to America managing director Roy Collett and director Peter Hilton have agreed to stay on at the company for the next three months.
After that, Collett will leave to concentrate on running his travel agency, Collett’s Travel in north London, while Hilton will remain with the operator on a part-time basis. No redundancies are expected.
Button said he first considered buying Key toAmerica two years ago, but dropped his interest when a rival operator, Funway Holidays, put in a bid.
However, talks between Key to America and Funway broke down last year when the two could not agree a price (Travel Weekly November 25 1998).
Button said: “Our product is five-star while Key to America is four to four-and-a-half star, so the programmes complement each other well.”