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Aug 5, 2011
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Dufry buys emerging markets businesses for $957 mln

By
Reuters
Published
Aug 5, 2011

August 5 - Swiss travel retailer Dufry has bought airport retail operations in five emerging markets, including Argentina's leading travel retailer Interbaires, for a total $957 million.


Dufry, a global travel retailer with operations in 45 countries, runs more than 1,160 shops located at airports, cruise liners, seaports, and other touristic locations.

The new businesses have seen double-digit growth over the past years and reached a combined turnover of $395 million in the 12 months ended May 2011, Dufry said in a statement on Friday.

The transactions have been fully financed with debt, and Dufry entered an additional 5-year syndicated bank facility, the group said.

"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," Chief Executive Julian Diaz said in the statement.

Dufry paid $285 million for Interbaires, which operates duty-free shops in the five main Argentinean airports, generating turnover of approximately $250 million in 2010, Dufry said.

It also bought retail businesses in Uruguay, Ecuador and Armenia, whose combined turnover represents about $85 million, as well two shops at the international airport in Martinique and a wholesale platform.

The new businesses should be integrated in the next 12 months and be basic EPS accretive from 2012 and core EPS accretive in 2011, Dufry said, adding it expected cumulative synergies of approximately $25 million over the next two years.

Shares in Dufry opened down 3.12 percent in line with a broader fall in global stock markets.

Dufry currently operates around 1,160 shops located at airports, on cruise liners, and at seaports and other tourist locations in 40 countries around the world.

(Reporting by Silke Koltrowitz; Editing by Will Waterman)

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