|LS travel retail is delighted to announce that its subsidiary AELIA has been selected as the ‘preferred bidder’ for the acquisition of AdR Retail, the current operator of the duty free/duty paid concessions (8 stores,3,143 sqm reaching 4,800 sqm by October 2012) in Roma airports (Fiumicino and Ciampino). AdR Retail’s total duty free sales should reach 140m € after the modernization period.
Lagardère Services' CEO Dag Rasmussen comments: “We are grateful for the opportunity given to us by Aeroporti di Roma. We look forward to working with AdR and its team, and to bringing exemplary levels of customer service and commercial performance to the retail operations at Roma.
Together with our brand partners, we ambition to create the fantastic airport experience Rome deserves. We have shown a real know-how in operating similar platforms in re-development, in particular in Paris at Roissy-Charles De Gaulle and these successful experiences will be of great help for completing this project. We have very ambitious plans to become the N°2 in Travel Retail world-wide over the next five years, and this tender is a strategic building block in achieving that goal.”
The investment is consistent with LS travel retail guidance, and in line with LS travel retail strategy, as exposed to its Investors on June 12th. This strategic move will participate to increasing Lagardère Services top line while being relutive in terms of EBITDA margin.
Based on LS travel retail pro-forma EBITDA, the transaction multiple is in line with industry standards.
LS travel retail has been advised in this transaction by Leonardo & Co. (financial adviser), Société Générale (financing), Chiomenti (legal) and Ernst & Young (accounting & taxes).