Protravel International Buys Rich Worldwide Travel

In a merger of two large New York area agencies, Protravel International Inc., based in New York, N.Y., has acquired Rich Worldwide Travel, based in Harrison, N.Y. in Westchester County in New York City’s suburbs. Priscilla Alexander, president of Protravel, said that with three of Rich Worldwide’s offices in main Protravel locations, it was a natural merger of similar customers and business philosophies.

Both agencies also are members of the Virtuoso luxury marketing network. Protravel has about a 70-30 business-leisure travel mix while Rich Worldwide is about 60-40, according to executives at both agencies.

Rich Worldwide, with reported sales of $60 million, founded by Ina and Allen Rich in 1956, has been jointly run for the last few years by their sons-in-law Nathan Devore and Richard Esman, who have served as co-presidents, along with their daughters Donna Rich Devore and Michele Rich Esman. All four principals will continue with the merged companies in senior management positions.

Founded in 1984 by Priscilla Alexander, and with more 650 people in 20 locations, Protravel, which one industry survey reported has $242 million in sales, is one of the leading agencies in the U.S., focusing on premium leisure business and corporate accounts in the $1-$10 million range.

“This merger affords us the ability to position ourselves for growth in a very competitive industry, allowing us to leverage expanded sales on behalf of our clients, while finding economies of scale that will permit us to invest in people and technology for continued success,” Alexander said.

Tony Shepherd, Protravel’s chief operating officer, said Protravel’s executive team has known Rich Worldwide’s top executives for more than 20 years. “From their perspective, everyone has been hit by the economic downturn and they are looking to protect their business and employees,” he said. “The business is still there but there’s just less of it. They needed to find a way to protect their company in the long term and short term. They needed an agency that reflected their philosophy and business mix.” Shepherd said the total sales of the combined agencies actually should reach nearly $600 million, attributing the lower recent sales to the recession.

According to Shepherd, Rich Worldwide had approached Protravel toward the end of last year about a merger or alliance, but as discussions evolved it seemed the best way was to structure the deal as a straight acquisition. “At end of day you have to feel comfortable with people and we were with the four major principals,” he said. “Our growth has come with targeted acquisitions of small and midsize agencies. This seemed to be a nice fit and it made a lot of sense.”

Rich Worldwide will now be known as Rich Worldwide, a division of Protravel, and its Harrison headquarters will move into expanded space in the same building, but the agency’s New York and Sherman Oaks, Calif., offices will be consolidated with Protravel’s offices in or near those locations. “We’re expanding the space in Harrison and putting in state-of-art facilities,” said Shepherd. “We see lot of opportunity in that part of Westchester.”

Asked why Rich Worldwide decided to seek a deal at this time, Nathan Devore said it was because it allowed his agency to become a much stronger organization with more efficiencies and the ability to grow its client base. “It allows us so many opportunities that have been lacking recently due to economy,” he said. “It’s really a no brainer because of the synergies created and the fact that we really have the same philosophy.”