On April 22nd, Dufry completed the transaction to acquire 51% of the travel retail business of Folli Follie Group.

The Folli Follie travel retail business is the leading travel retailer in Greece with 111 shops, more than 18,000 square meters of retail space and an attractive concession portfolio with a long duration. In 2012, the business generated turnover of EUR 300.3 million and EBITDA of EUR 83.7 million resulting in a 27.9% EBITDA margin. Overall, the business generates more than 80% of its turnover with international customers, among which Germans and British were the most important visitors.

The payment for the 51% equity stake as well as certain transaction and shareholder structuring cost were made out of Dufry Group’s liquidity. The consideration for the 51% equity stake is EUR 200.5 million. As part of the completion, the target business also entered into a new credit facility of EUR 335 million agreed with a syndicate of local banks. The facility is a committed 5-year amortizing term loan and is structured as non-recourse debt secured only through pledging of 100% of shares of the target business.

Dufry will integrate the acquired business into its existing operations and fully consolidate it. Dufry expects to generate synergies around EUR 10 million within 18 months through increasing spend per passenger, gross margin improvements and reorganisation of back-office functions.

Julian Diaz, Dufry’s CEO, commented: “I am pleased to finally conclude this transaction. As mentioned before, it represents another very important step towards our strategy to consolidate the fragmented travel retail industry. We are confident that the experience of Folli Follie in the Greek market, combined with Dufry´s global presence will generate important shareholder value and also further strengthens our position as the leading global travel retailer.”

 
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