INTERNATIONAL. International travel-related food services giant Autogrill this afternoon responded to a Bloomberg report that the company is in talks with Dufry to create a new global leader in travel retail/food & beverage.
“With reference to today’s rumours, Autogrill would like to clarify that, as part of its growth strategy, the Group is interested in exploring various strategic options, and to this end it is having talks also with sector participants to further promote the development of Autogrill and create value for all stakeholders,” the company said.
Quoting confidential sources, Bloomberg reported that under one potential structure, Dufry would purchase Autogrill and pay in stock. The deal, it said, would unite companies with a current combined market value of US$6.6 billion.
Dufry told The Moodie Davitt Report that it does not comment on market rumours.
Such a deal has much logic and would provide attractive balance to Dufry’s largely duty free and specialist retail-orientated business. The group has placed increased focus on the food & beverage sector through its Hudson business in North America (the airport F&B heartland).
Commenting on the company’s 2021 results in March, CEO Julián Díaz said that Dufry’s acquisition of Hudson in the US had created a clear growth path in the food & beverage sector.
“The best way to grow in the US is to really invest in food & beverage for Dufry,” he said. “We are the leaders in travel retail – duty paid and duty free. And the assumption is that for accelerating growth we need to invest in two different businesses – one is food and the other one is management of concessions.
“The second one is a longer-term strategy. Food & beverage is something that we can increase and improve daily because there are [regular] tenders and RFPs.
“In 2019, before the pandemic, 65% of the [airport] business in the US was food & beverage. Within the remaining 35%… almost two-thirds is duty paid. And we are the leaders in duty paid. The remaining part is the smallest part – duty free. And we are the leaders in duty free too.”
All that will resonate positively for new Dufry CEO Xavier Rossinyol, who has a strong background in food & beverage.
A key part of Dufry’s management team from 2004 to 2015, first as Chief Financial Officer until 2012, and then as Chief Operating Officer EMEA and Asia until 2015, he then became CEO of gategroup, the leader in airline catering and onboard retail. Rossinyol left that role in November 2021 before being named to the Dufry role this February.
One of Dufry’s main international rivals, Lagardère Travel Retail has built a strong F&B presence anchored by the 2015 acquisition of North American travel retailer-to-restaurateur Paradies. In February this year, it also struck an agreement to acquire a majority share and controlling interest in Dubai-based HWH Hospitality Investments’ acclaimed food & beverage operations.
Italy’s Benetton clan would become the biggest single investor in the combined listed entity with a stake of about 20%, the report said, noting that discussions are at a preliminary stage.
Autogrill is the leading global operator in food & drinks services for travellers, operating in 30 different countries across four continents. It controls HMSHost, through which it operates in 80 North American airports.
HMSHost International operates an extensive travel-related F&B footprint in Asia and the Middle East, together with airports and railway stations in Northern Europe and Oceania.
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