FROSCH Acquires Valerie Wilson Travel-HongKongStar

Hong Kong

FROSCH Acquires Valerie Wilson Travel

Two luxury travel dynasties are joining forces by way of FROSCH’s acquisition of Valerie Wilson Travel (VWT), a deal that closed on April 30.

New York-based Valerie Wilson Travel will continue to operate autonomously under the same name, headed by Chairman and CEO Valerie Ann Wilson, who founded the agency in 1981, both companies said. Her daughters, Kimberly Wilson Wetty and Jennifer Wilson-Buttigieg, will continue to serve as co-presidents; Brian Buttigieg, VWT’s CFO, will now serve as its COO while also assuming the role of FROSCH’s General Counsel.

FROSCH, which has headquarters in Houston and New York, was founded in 1972 and acquired by its chairman, Richard Leibman, in 1977.

His son, Bryan Leibman, joined the company in 1998 and now serves as president; Lara Leibman came on board in 2004 as executive vice president.

Both agencies stressed the collegial nature of the deal, emphasizing the myriad ways in which the two companies complement one another, including their “family-first cultures.”

“What made it so attractive is we’ve always had this mutual respect, with the same culture and the same values,” Richard Leibman said. “We’re going to be stronger together,” he said, adding that the acquisition was “a silver lining to the pandemic” with the two companies “now aligned and working together as one team.”

FROSCH has a long history of growing through acquisitions, which number upward of 50. “It’s not something new to us,” Leibman said. “I want to be very clear here. All our acquisitions have always been about growth – and the reason we do this is to strengthen the company to have a more robust offering.”

FROSCH’s annual sales in 2019 were $2.4 billion and VWT’s were $325 million, according to Travel Weekly’s 2020 Power List .

Wilson-Buttigieg reiterated the point that VWT and FROSCH have historically operated as friendly competitors and never poached employees or associates/independent contractors (ICs). “It’s a do-no-harm policy,” she said, which is a distinguishing characteristic of the deal.

On the consortia front, FROSCH will continue as a member of Signature Travel Network and VWT as a member of Virtuoso . “We actually see that there is greater strength value for both consortia,” said Wilson Wetty. “Valerie Wilson is one of the largest members of Virtuoso and FROSCH is the largest member of Signature. There is a need for both of us to maintain our individual consortia.”

The two companies will operate out of FROSCH’s new Manhattan headquarters, which are currently under construction.

“Combined we have 46 offices throughout the country, with New York obviously being our biggest and most important,” said Marc Kazlauskas, FROSCH’s president, U.S. branch operations.

“One of the things that’s very important about both companies is our very large associate/independent contractor business. Bringing these two incredible family brands together adds a tremendous amount of benefit to not only our existing ICs and associates but those who are looking for a new home” due to the “buying power, the infrastructure and relationships and tools we offer together.”

When the pandemic hit, FROSCH was in a better position than many companies, as it historically has operated very conservatively. “We didn’t borrow money and we didn’t come in with any debt,” Leibman said. “We were very careful with how we managed our money, and we kept a lot of reserve.”

During financial crises – including 9/11 and the 2008 recession – FROSCH never laid anyone off, he said.

Nonetheless, “we realized very quickly the severity of what we were facing. We had to figure out how to cut costs without impacting jobs.”

FROSCH determined that the best way forward was to bring in an investor. In February 2021, EagleTree Capital took a minority position in the company.

By bringing in EagleTree, FROSCH has been able to invest in infrastructure, technology and acquisitions such as the purchase of VWT, Leibman said.

In the final analysis, both agencies believe their “family-first” philosophies are what makes the acquisition and ideal FIT. “That’s who we both are and together it makes us even stronger because of the values that we represent and share,” Lara Leibman said.

Going forward, it also puts both companies in the position “to take advantage of the pent-up demand for travel,” she said. “The addition of VWT ensures that we will be at the forefront of a new era in luxury travel.”

Xiangdong Lai