Lagardère Travel Retail strikes deal to acquire International Duty Free
07/26/2019|8:47:28 PM|Moodie Davitt Report

Lagardère Travel Retail has struck an agreement to purchase 100% of International Duty Free (IDF), Belgium’s leading travel retailer, for an enterprise value of €250 million. IDF, which generated revenue of €183 million in 2018, has operations in Belgium, Luxemburg and Kenya.

IDF is a 100% owned subsidiary of Compagnie Nationale à Portefeuille (CNP), itself owned by the Frère group. The completion of the transaction is subject to the customary conditions, including regulatory approval. Consolidation of IDF’s businesses would bring Lagardère Travel Retail’s annual revenue to €5.3 billion.

IDF holds long-term contracts and currently operates more than 30 stores, including 25 duty free, fashion and confectionery points of sale, at Brussels Airport; two duty free stores at Charleroi Airport; premium chocolate stores under the brand The Belgian Chocolate House at Brussels South Station, in downtown Antwerp and in Luxembourg; plus one store in Kenya.

Lagardère Group said: “This transaction once again illustrates the reinvestment of proceeds from disposals in activities that provide significant operating synergies. They are accretive to group recurring EBIT, and ensure solid cash generation.”

The move was announced by the group as it revealed first-half results, with Lagardère Travel Retail revenue hitting €1,995 million, up 15.8% on a consolidated basis and up 6.5% like-for-like.

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