NORTH AMERICA. Morgan Stanley Capital Partners (MSCP) has hailed the returns on its three-year investment in Hojeij Branded Foods (HBF), the North American airport food & beverage specialist, which was sold recently to Lagardère Travel Retail for US$330 million. As reported, the deal was announced in August and completed in late November.
MSCP acquired a majority stake in HBF from its founders in July 2015 in a transaction that valued the company at US$155 million.
MSCP said that when it invested in HBF, it identified “an opportunity to invest in a best-in-class airport food & beverage operator that was rapidly gaining share within an attractive industry benefiting from secular tailwinds”.
It added that during MSCP’s ownership, HBF’s number of airports, restaurant locations and EBITDA more than doubled. HBF also completed the acquisition of wine bar specialist Vino Volo, adding a proprietary concept to HBF’s broader portfolio of 35+ restaurant brands and concepts.
“We were attracted to HBF given the management team’s demonstrable track record of market share gains within the growing airport F&B industry,” said MSCP Managing Director Adam Shaw. “Over the course of our investment period, HBF, led by Regynald Washington, successfully assembled a top management team, entered numerous new airports and geographies and completed the acquisition of Vino Volo, creating a scaled airport operator.”
“MSCP has been a great partner to HBF, supporting us not only with additional growth capital, but also with the thought leadership and creativity necessary to help us achieve our financial goals in a sustainable way. We look forward to building upon this platform in the years to come with our new partners,” said HBF CEO Regynald Washington.
As reported, Lagardère Travel Retail has created a new Dining Division with the integration of the new food service operations, as it seeks to strengthen its position as a major restaurateur in North American airports. The new operation should surpass US$350 million in food service sales in 2019, Lagardère Travel Retail said.
