US. HMSHost has announced that it has acquired the assets of speciality retailer CBR Inc. CBR has 34 stores at nine US airports, including Denver, Minneapolis-St. Paul and Houston George Bush Intercontinental.
Under the terms of the agreement an additional seven outlets at four airports will be acquired upon receipt of airport consents. The amount to be paid for CBR’s airport operations is expected to be approximately US$23 million.
CBR, an operator with over 30 years experience in the airport retail market, is forecast to produce sales of US$30.6 million and EBITDA of US$3.8 million in 2007. President and CEO Carole Howe opened the first store, Touch the Earth, in Minneapolis-St. Paul International Airport in the mid 1970s. Today the company operates more than 60 stores in airports throughout the US. CBR recently teamed up with HMSHost to form Minneapolis Retail Partners, a joint venture currently operating shops as part of Minneapolis-St. Paul International’s Northstar Crossing retail programme.
The deal gives Autogrill-owned HMSHost eight new proprietary brands to add to its portfolio. Concepts such as Spirit of the Red Horse (Western style accessories) and Minnesota! are developed in-house and provide customers with an assortment of local products including accessories, gifts and clothing.
Retail and duty free business accounted for 32% of Autogrill Group sales in the first nine months of 2007 against 29.6% in the same period of 2006, growing from €839.5 million to €1,126.5 million. This was due to strong growth by Aldeasa and retail business in Italy, together with revenues by contributed by Alpha Airports (limited to June-September 2007) said the operator.
“CBR will continue to be an industry leader in airport retail. We are excited to become part of HMSHost/Autogrill Group and continue to grow our award winning concepts,” said Howe.
HMSHost Corporation CEO Elie Maalouf commented: “We are delighted to welcome the CBR associates to the HMSHost and Autogrill team. Under this new arrangement the existing Minnesota-based CBR management team and associates will continue to offer the quality products and high level of customer care that has made their shops so popular with airport travelers around the US.”
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