Dufry AG has bought four companies worth a combined USD957 million to add outlets in emerging markets (Bloomberg/dfnionline.com/Reuters/The Moodie Report, 05-Aug-2011). The purchases are expected to boost earnings per share starting 2012 and generate USD25 million in savings in the next 12 months. The transactions were fully financed with debt, and Dufry entered an additional five-year syndicated bank facility of USD1 billion. The acquired businesses are:
- Interbaires, an airport retailer in Argentina that operates Ezeiza International Airport and Airport AEP Aeroparque Jorge Newbery in Buenos Aires, as well as airports in Bariloche, Cordoba and Mendoza;
- Airport-retail operations in Uruguay (Montevideo Carrasco Airport and Punta Del Este Airport), Ecuador (Guayaquil Airport), Armenia (Yerevan Airport) and Martinique;
- A wholesale platform.
The acquisitions will add 21 stores in 10 airports with retail space of 13,500sqm to Dufry’s assets. All have long-term contracts (more than 10 years) and in the 12 months to the end of May-2011, the businesses’ combined turnover was USD395 million.
Dufry: “The companies that we were able to acquire are among the best in our industry: they are long-term contracts for attractive locations in fast growing emerging markets. They are also a 100% airport duty free business, which is perfect for implementing Dufry business model to achieve synergies and to develop the business further.” Julian Diaz, CEO. Source; Company Statement, 05-Aug-2011.
Dufry noted the acquisitions had the following attractions:
- Emerging market locations with high growth potential;
- Highly profitable operations;
- Quality and long-term concession portfolios;
- Consolidation of local operators as Dufry’s global market share increases by 1 ppt to 8%.