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- Two providers have complete market place cap of about $5.5 bln
- Benetton holding firm Edizione to grow to be biggest shareholder
- Dufry CEO to lead combined group
July 11 (Reuters) – Duty-no cost retailer Dufry (DUFN.S) has agreed to obtain Italian airport and motorway caterer Autogrill (AGL.MI), creating a vacation field large to acquire edge of expansion prospects as the sector rebounds, the businesses reported on Monday.
Italy’s Benetton relatives – Autogrill’s premier investor – will transfer its complete 50.3% stake to Dufry, which will offer to buy out minority stakeholders, with the Benetton’s keeping business Edizione then starting to be the combined group’s most important shareholder with a stake of 20-25%.
“The mixture of the two groups will build a new leader in travel encounter and let us to drastically improve our presence in main markets, these as the U.S., and in the journey meals and beverage sector,” Dufry Chairman Juan Carlos Torres stated in the companies’ assertion.
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“This transaction will bolster our balance sheet, decrease our leverage and build meaningful synergies.”
At Friday’s current market charges, the two providers had a full current market capitalisation of about $5.5 billion.
Dufry CEO Xavier Rossinyol will lead the mixed group, Torres preserving his job in the new company.
The transfer of the Benetton family’s stake, held as a result of Edizione, will be at a ratio of .158 new Dufry shares for each Autogrill share, the teams stated in a assertion.
The offer represents a discount of 25-30% to trading rates on Friday, Rossinyol reported on a call with reporters.
Dufry’s subsequent tender for remaining Autogrill shares will give .158 new Dufry shares for every Autogrill share or 6.33 euros ($6.43) per Autogrill share.
Dufry shares rose 6.2% in early trade when Autogrill inventory fell 8%.
“We welcome the offer announcement as the small business blend of the two businesses signifies a complementary strategic in shape and will help Dufry’s new prolonged-term system,” Baader Helvea analyst Volker Bosse wrote in a client notice.
The put together entity will be supplied a new title and the offer is envisioned to entire in the 2nd quarter of upcoming calendar year.
Dufry reported the combined organization will cater to 2.3 billion passengers in far more than 75 nations, creating income of 13.6 billion Swiss francs ($13.90 billion) and main earnings of 1.4 billion Swiss francs.
Autogrill’s present CEO Gianmario Tondato da Ruos will consider on the placement of government chairman of the new group’s North American small business and Edizione Chairman Alessandro Benetton will be part of as honorary chairman.
The providers had confirmed they were being in non-special talks in late June. read extra
Basel-centered Dufry operates about 2,200 shops at airports, cruise liners, seaports and other tourist areas around the globe.
Dufry’s natural and organic sales extra than doubled in the initially quarter of 2022, driven by a potent rebound in European journey as coronavirus curbs eased. However, natural revenue were continue to 40% beneath pre-pandemic levels in 2019.
For the 2nd quarter web revenue have been down about 17% when compared with 2019 and initially-50 % sales were down about 25% from 2019, Dufry explained.
Autogrill runs bars, cafes and dining places at 139 airports internationally, such as 80 in North The usa, as perfectly as on motorways in Europe.
UBS and Credit score Suisse acted as monetary advisers to Dufry, with BofA Securities acting for Edizione.
Citigroup International Marketplaces Europe AG, Intesa Sanpaolo and Mediobanca had been fiscal advisers for Autogrill.
($1 = .9843 euros)
($1 = .9783 Swiss francs)
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Reporting by Maria Ponnezhath and Brenna Hughes Neghaiwi
Supplemental reporting by Giulia Segreti
Enhancing by David Goodman
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