GREECE. Greek jeweller Folli Follie has now finalised its deal to purchase an additional 20% stake in Hellenic Duty Free Shops (HDFS) from the Agricultural Bank of Greece.
The Greek competition commission approved the buyout of HDFS by Folli Follie and IT and electronics retail group Germanos earlier this year (The Moodie Report 26 May).
Folli Follie now owns 25% of HDFS. The acquisition is a clear indication of the company’s commitment to the travel retail market, according to new business development director Johnnie Voutsas.
At present Folli Follie has over 40 duty free points of sale in airports and inflight worldwide. The company is planning to harness the synergies offered by HDFS – which bought the rights from the state to manage and operate the country’s duty free shops for a 50-year period from 1998, and has a network of 58 outlets in 38 points of sales all over Greece – to strengthen its travel retail presence. In turn, Folli Follie’s expertise in terms of branding, marketing and retailing will aid HDFS’s national and international expansion plans.
HDFS’s share price had appreciated by +60% as of 29 September, based on Folli Follie’s initial purchase price of €8.40 (US$9.95).
In the first half of 2003, Folli Follie reported an +18% increase in sales and a +38% rise in pre-tax profit, despite the effects of SARS and the Iraq War.
Folli Follie will be exhibiting at this year’s TFWA show in Cannes at Stand V2 in the Ambassadeurs Village.
