Dufry, through its Russian joint venture established in 2012, has reached an agreement to acquire a 60% stake of RegStaer Vnukovo, writes Martin Moodie in Moscow.
The deal strengthens one of Dufry’s most successful international partnerships, started in January 2012 when it acquired 51% of a joint venture with Regstaer Group’s business at Sheremetyevo International Airport.
RegStaer Vnukovo generated sales of €58.8 million at Vnukovo International Airport in the 2018 financial year and operates duty free and duty paid shops there. Vnukovo, which handles around 22 million passengers annually, is one of the three most important airports in the Russian capital, Moscow.
Dufry said that its acquisition of RegStaer Vnukovo will significantly increase its presence at Moscow airports (the company already operates at Sheremetyevo and Domodedovo). The deal also consolidates Dufry’s position in Russia in addition to existing operations in St. Petersburg, Sochi and Krasnodar.
The operation at Vnukovo Airport, which will be fully consolidated by Dufry upon completion of the transaction (expected for Q3 2019 following customary approvals), features a long-term concession until 2035 and includes more than 30 duty free and duty paid shops.
The 6,800sq m retail space offers an assortment including core duty free categories plus fashion and accessories. The acquisition will also allow Dufry to extract operational efficiencies through the integration of the management offices of its operations in the Moscow area.
Dufry CEO Julián Díaz commented: “The acquisition of the majority stake of the duty free and duty paid operation at Vnukovo airport is an important step as it allows us to considerably strengthen our position in the Moscow region with an attractive long-term concession and to extract synergies at operational level.
“Dufry is now present in seven of Russia’s ten largest airports with the opportunity to serve both domestic and international passengers. We are looking forward to offer Vnukovo passengers an attractive shopping experience with the new 1,300sq m walkthrough shop (trading as Duty Free Moscow, picture below) just opened.”
“This also reconfirms our growth strategy which focuses on organic growth as well as on small- and mid-size bolt-on acquisitions, which allow Dufry to extend its global footprint and to leverage our organizational platforms, thus generating additional efficiencies.”
Comment: This deal strengthens one of Dufry’s most successful partnerships, started in January 2012 when it acquired 51% of a joint venture with Regstaer Group’s business at Sheremetyevo International Airport in Russia (and created a commercial and purchasing agreement for Regstaer’s Vnukovo operation), writes Martin Moodie.
RegStaer has proved to be one of Dufry’s most reliable and trusted partners. Dufry CEO Julián Díaz and RegStaer Founder and Chairman Alexander Baev enjoy a close personal relationship. That bond has helped drive a highly successful alliance, which is boosted considerably by today’s announcement.
RegStaer is a high-quality operation, as evidenced by its impressive new walk-through store at Vnukovo International Airport opened earlier this week. The retailer also opened its first arrivals duty free business at the airport, a further boost to a strong operation.
