ISRAEL. Gebr. Heinemann has bought out its partners – the Danos family – in JR/Duty Free, which operates the duty free concession at Ben Gurion International Airport.
The German travel retailer, which has been a 50/50 partner in the Israeli company since 2018, now becomes the sole owner.
James Richardson Chair and Owner Evelyn Danos told The Moodie Davitt Report that the decision to sell had its roots in the long-running COVID-19 pandemic. “During COVID, it had become clear to the two partners that it would be better for the business if there was just one owner,” Danos observed.
The decision to divest was ultimately made in May 2023, she said. This predated by five months the horrific events of 7 October in Israel and the subsequent conflict in Israel and Gaza, with which the move to divest had no bearing, Danos emphasised.
The timing of the closing was dependent on relevant approvals being granted, something out of the company’s control, she added.
She said last May’s decision was taken in the best long-term interests of the business, given Heinemann’s extensive duty free interests around the world.
James Richardson (JR) Israel was founded by Evelyn Danos’ father David Mandie, a legendary travel retail pioneer who also created JR/Duty Free in Australia, sold to Lotte Duty Free on 31 December 2018.
Continuity pledged
“This is an incredibly emotional time for us,” Danos said, adding that the company was comforted to know there will be no change to management and staff with the Israel business continuing to be led by Chief Executive Officer Amnon Tagori and Chairman Garry Stock. The business will continue to trade as JR/Duty Free with no management nor employment term changes.
“Israel has a very special place in our hearts,” she said. “We have many close family and friends in Israel and we value these relationships dearly. From a business perspective we are not leaving Israel as we still have multiple investments in Israel, with more to come.
“However, the next time we fly through the airport it will be as customers, not as owners.”
Gebr. Heinemann Co-CEO Raoul Spanger told The Moodie Davitt Report, “We are pleased that we have now met all the requirements and approvals for the takeover of the shares of the duty free joint venture, even if this now coincides with unforeseeable events for everyone involved.
“All of us – the Danos family as well as the Heinemann family – are particularly concerned about the safety of the employees and their families. We will do everything we can to further expand the business together with the strong and experienced local management as soon as possible.” ✈
