CANADA/ITALY. Autogrill subsidiary HMSHost has completed the disposal of all its motorway travel centre operations in a C$255 million (US$190 million) deal.
These comprise three partnership interests held by HMSHost Motorways Inc. and HMSHost Motorways L.P.
The concession assets at three travel centres owned and operated by HMSHost’s SMSI subsidiary, separate from the partnerships, are included in the divestment.
HMSHost’s partner in the three alliances, KD Infrastructure L.P. (KDLP), is also selling its interests. The transaction includes additional earn-outs based on initiatives post closing.
The purchaser, a consortium led by Arjun Infrastructure Partners Ltd and Fengate Capital Management Ltd, has acquired the interests of HMSHost and KDLP in all 23 plazas, where the contracts expire in 2060. Combined concession revenues for the businesses reached US$111 million in FY2018.
The transaction involves 23 Travel Centres across Highways 400 and 401 in Ontario, Canada operated under the ONroute brand name.
As part of the transaction, HMSHost has agreed to a transition period to provide support services to ensure continuity of service.
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The company also organises the annual Airport Food & Beverage (FAB) Conference & Awards. FAB 2019 will be held in Dallas, hosted by Dallas Fort Worth International Airport on 26-27 June.
