HOLIDAY Autos is due to complete the purchase of New York-based partner Kemwel this week for an undisclosed sum thought to run to several million US dollars.
The two companies formed a 50/50 venture in North America two years ago, called Kemwel Holiday Autos, but Holiday Autos chairman and chief executive Clive Jacobs said the strategy of his company had now changed.
“We recently purchased our French and German general sales agents and our strategy now is to take full control of our businesses in different markets,” he said.
Jacobs claimed the joint venture had been very successful but the time was right for Holiday Autos to determine the company’s future direction. “It has been very important for us because we have gained a better understanding of the US market,” said Jacobs.
“We’ve quadrupled the business in the past two years so Kemwel Holiday Autos is now taking more than 100,000 bookings from the US into Europe. We have perhaps not been as profitable in the US as Kemwel would have liked, but we believe the right strategy is to build the business at this stage.”
Kemwell was previously owned by Ken and Michael Welner. The deal, which Jacobs said was one of the most significant in Holiday Autos’ history, includes the Kemwel name and the assets of the business. “We will retain the Kemwel name because it is a strong, well-known brand in the US,” added Jacobs.