USA. Autogrill division HMSHost is to re-enter the airport retail business after striking a deal to acquire US travel retailer Stellar Partners, Inc.
Stellar Partners currently operates 38 convenience and speciality retail stores in ten airports in the USA and has annual revenues of US$38 million and an EBITDA margin of 11%.
Stellar will become an independent subsidiary of HMSHost, and will remain headquartered in Tampa, Florida. Stellar President and CEO Susan Stackhouse and Senior Vice President and COO Ramon Bosquez will continue to lead the business.
HMSHost exited the retail business in 2012 after sister company World Duty Free Group (since acquired by Dufry) took over its 240 stores across North America.
“We are thrilled to be re-entering the airport retail business by bringing Stellar, considered the best small operator in the industry, into the HMSHost family,” said HMSHost President and CEO Steve Johnson. “The expertise Susan and Ramon bring will help us to develop our airport retail business, as well as enhance our existing retail stores in our motorway channel. I have known Susan and Ramon for many years, and very much look forward to working with them to grow Stellar in North American airports and position HMSHost to re-enter this US$1.5 billion market.”
“We, at Stellar, are delighted to be joining the HMSHost family, a world leader in our industry,” said Susan Stackhouse. “I am personally honoured that Host has recognised our value, is willing to invest in our future, and will allow the legacy of the Stellar brand to continue.
“Steve and I have known each other for many years and it is our mutual respect that has brought our companies together. Host’s resources and decades of experience will help Stellar grow and compete, while providing new opportunities for our 250 associates and our talented management team. We look forward to advancing this exciting new alliance to our airport partners and gaining their consent.”
Stellar, as a subsidiary of HMSHost, will continue to operate its 38 locations in such airports as Tampa International Airport, Orlando International Airport, Philadelphia International Airport, Miami International Airport, San Diego International Airport, and Washington Dulles International Airport. Stellar currently operates exclusive brands Stellar News and Stellar Books, as well as other brands.
Susan Stackhouse founded Stellar nearly 30 years ago when she purchased the single duty free store that she was previously managing at Tampa International Airport. She later won a contract to open a news and gift store at Orlando International Airport, and grew the business from there, creating a portfolio of retail brands.
This transaction is expected to be finalised in the Autumn.
