Global Travel Retail operator Dufry has cemented its leadership in the sales channel, lining up the purchase of majority control of Autogrill.
The transaction, announced this week, will comprise Dufry taking a 50.3% in the ‘travel food & beverage provider’, followed by a mandatory tender offer for the rest of the company. A share swap will see Edizione, the company giving up its Autogrill stake to Dufry, become “the major shareholder in the combined entity”.
Following the move, which is subject to regulatory and shareholder approvals, Dufry will leverage the “transformational combination” through a stronger focus on “integrated and digitalised offerings” both in its GTR stores and Autogrill’s food and drinks outlets in airports, motorways and railway stations in 30 countries.
Dufry’s current footprint comprises around 2,300 shops in airports and seaports, cruise lines, railway stations and “downtown tourist areas” in 66 markets worldwide. The group’s CEO, Xavier Rossinyol, will assume the same role post-transaction, with Autogrill chief Gianmario Tondato da Ruos becoming executive chair of the combined North American business.
“Complementing Dufry’s portfolio with F&B broadens our offering and gives us more contact points with travellers,” Dufry said this week. “In addition, the integrated group will have greater resources to grow its digital capabilities, focused on delivering tailored passenger experiences.”
On a geographical basis, the move will bring the US into clearer view: “The combined entity will benefit from … Autogrill’s strong position in the highly attractive and resilient US F&B market …,” the lead company added. “The US has proven to recover quicker and to be less volatile than the rest of the world due to the high share of domestic passengers.
“The combined group will be present in more than 100 airports in the US, and with a shared presence in 17 of the country’s top 20 largest airports.”
While synergies were described as “compelling”, details on any potential headcount consolidation were not disclosed, while a “dedicated team will focus on the delivery on a zero-based budgeting approach”.
Dufry was moved to confirm late last month that discussions had started with Milan-headquartered Autogrill as a result of “media reports and market speculations”.
To download a presentation given by the two companies to investors and analysts on Monday, click here.
Retail is detail, especially in Global Travel Retail – Comment
