Lagardère Travel Retail announces the signing of an agreement for the acquisition of 100% of Hojeij Branded Foods (HBF), which will be combined with Paradies Lagardère, the organisation’s North American division.
Combining the activities of Lagardère Travel Retail and HBF would create a USD 1.1 billion player, the third largest player in the North American Travel Retail and Foodservice industry. The price for the acquisition, payable in cash, is USD 330 million.
Founded in 1996 by Wassim and Kathy Hojeij, HBF is one of the leading airport Foodservice operators in North America. Headquartered in Atlanta, it operates more than 124 bars and restaurants in 38 airports across the US and Canada.
HBF generated total sales of USD 225 million in 2017 and also benefits from a sound portfolio of awarded contracts (opened in 2018 and some to open in 2019). Its strong development over the past few years is attributable to its recognised operational excellence, the award of new concessions, and the successful acquisition in 2017 of Vino Volo, the largest airport wine bar chain in the US and Canada.
In addition to top line synergies, the transaction would generate significant costs and operating synergies starting from the first year of integration. Recurring synergies could reach approximately USD 10 million a year as of the fourth year after the acquisition.
The transaction is expected to be finalised during the fourth quarter of 2018.
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