CARIBBEAN. Avolta has bolstered its regional presence through the acquisition of a majority stake in Penha Duty Free Group, the Caribbean’s largest beauty retailer.
Initially, Avolta will acquire a 51% stake in the Penha family-owned business, which also claims to be the region’s biggest duty-free retailer.
Penha Duty Free operates 25 retail locations across Aruba, Bonaire, Curaçao, Grand Cayman and St. Maarten, boasting a strong footprint in airports, cruise terminals and downtown locations.
The transaction mechanism provides a contractual pathway to full ownership over time.
Avolta said the business benefits from a long-term concession portfolio, with a weighted average remaining term of more than ten years, and around CHF47 million (US$58 million) in revenue in 2025.
The deal expands Avolta’s reach across key Caribbean leisure destinations through the addition of a well-established travel retail platform with a diversified presence across multiple channels.
Avolta said the transaction aligns with its capital allocation framework, which prioritises disciplined, value-accretive investments.
Funded through available cash on its balance sheet, the acquisition is expected to have a negligible impact on leverage (less than 0.01x) while immediately contributing to EBITDA margin, earnings per share, equity free cash flow and ROIC, the company said.
Penha was founded in 1865 and remains under the same family ownership. ✈
