Lagardère Travel Retail Completes the Acquisition of International Duty Free (IDF), Belgium’s Leading Travel Retail Operator
20 September 2019 - 1:45AM
Business Wire
Regulatory News:
Lagardère (Paris:MMB):
Lagardère Travel Retail today announced that it had completed
the acquisition of International Duty Free, Belgium’s leading
Travel Retail operator also present in Luxembourg and
Kenya.
Announced on 25 July, this acquisition cements Lagardère Travel
Retail’s position as the world’s third-largest operator of Duty
Free airport points of sale and as the European leader in Travel
Retail, bringing its annual revenue to a total of €5.3 billion1.
The acquisition also enables Lagardère Travel Retail to extend its
presence to an additional leading European Hub, Brussels, with
high-quality operations, while consolidating its positions in
Luxembourg and in Africa with entry into Kenya. Lagardère Travel
Retail will also be able to leverage IDF’s experience in the
fast‑growing Belgian premium chocolate segment to strengthen its
operations in this market at the international level.
The close affinity between IDF and Lagardère Travel Retail in
terms of culture and strategy will help to ensure a successful
integration, led by Nicolas Van Brandt as CEO, while the companies’
combined operating and sales expertise will help boost sales and
unlock recurring operating synergies.
IDF revenue for 2019 is expected to be between €185 million and
€190 million. The company will be consolidated in Lagardère’s
financial statements with effect from 1 October 2019.
The acquisition has been valued at €250 million2, or around 8x
IDF’s pro forma EBITDA3 for 2020, factoring in €7 million in
recurring synergies expected to be unlocked through to 2022. It is
expected to deliver solid cash generation and be accretive to
Lagardère Travel Retail’s recurring EBIT, as well as extending the
average life of the Group’s concession agreements.
This value-creating transaction is an important step in
Lagardère Travel Retail’s global growth strategy, marking its entry
into the Duty Free space in a further two countries, including
Belgium, where it will benefit from a long-standing leadership
position and long-term concessions in both of the country’s main
airports.
***
Until recently, the Lagardère group was structured into four
business divisions: Lagardère Publishing, Lagardère Travel Retail,
Lagardère Sports and Entertainment and Lagardère Active. In 2018,
the Group launched its strategic refocusing around two priority
divisions: Lagardère Publishing and Lagardère Travel Retail.
Lagardère shares are listed on Euronext Paris.
www.lagardere.com
1 Based on 100% of 2018 revenue, including the pro forma
contribution of HBF on a full-year basis, which would translate
into consolidated pro forma revenue of €4.1 billion. 2 Enterprise
value based on zero cash and debt. 3 Pro forma EBITDA corresponds
to estimated budgeted EBITDA for 2020 (first year of operation),
plus recurring run-rate synergies of €7 million.
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version on businesswire.com: https://www.businesswire.com/news/home/20190919005611/en/
Press Contact Lagardère Travel
Retail Vanessa MIREMONT Tel. +33 1 42 99 07 14
v.miremont@lagardere-tr.com
Press Thierry FUNCK-BRENTANO
Tel: +33 1 40 69 16 34 tfb@lagardere.fr
Ramzi KHIROUN Tel: +33 1 40 69 16 33 rk@lagardere.fr
Investor Relations Florence
LONIS Tel. +33 1 40 69 18 02 flonis@lagardere.fr
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