USA. Lagardère Travel Retail has closed the acquisition of North American airport restaurateur Hojeij Branded Foods (HBF) and subsidiary Vino Volo, an airport wine bar and retail chain.
The acquisition was first announced on 15 August, and is in line with Lagardère Travel Retail-owned Paradies Lagardère’s strategy to strengthen its position as a major restaurateur in North American airports.
Paradies Lagardère has created a new Dining Division with the integration of HBF and Vino Volo’s operations. The division will operate in 42 airports with approximately 100 brand partners and proprietary concepts ranging from full service to fast casual to quick serve. The new operation should surpass US$350 million annually in Foodservice sales in 2019, Lagardère Travel Retail said.
The integration of the two Foodservice operations will begin immediately, led by Paradies Lagardère President and CEO Gregg Paradies, with Regynald Washington leading the new Dining Division.
As reported, the acquisition value amounts to US$330 million on a cash-free/debt-free basis. Expected recurring synergies could reach approximately US$10 million a year as of the fourth year after acquisition, Lagardère said.
Lagardère Travel Retail commented: “Thanks to the complementary nature of the two companies’ locations and concepts, this transaction will generate commercial and financial synergies in the North American market, which offers attractive growth prospects.”
HBF is expected to be consolidated in the Lagardère financial statements from 1 December 2018. HBF 2018 revenue should be between US$240 and US$250 million, with recurring EBIT rates around 10%, Lagardère noted.
The combined activities of Paradies Lagardère, HBF and Vino Volo create the third-largest operator in the North American airport travel retail and restaurant industry, said the group. With operations in more than 100 airports, annual sales will exceed US$1.1 billion.
At the time of the announcement of the acquisition (on 15 August), Paradies Lagardère President and CEO Gregg Paradies commented: “We are delighted to join forces with HBF, an industry leader that shares our same commitment to quality, first-class customer service, and a family culture. This acquisition will accelerate our growth and enable us to achieve our goal of becoming one of the largest and best airport restaurant operators in North America.”
Lagardère Travel Retail Chairman and CEO Dag Rasmussen said at the time: “This acquisition strongly reinforces the presence of Lagardère Travel Retail in the food services industry and is in line with our strategy to grow in the three segments of travel retail: duty free and luxury, travel essentials and foodservices. We are very pleased to welcome HBF into our group. Together, we will aim to create a regional leader and break new ground.”
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Please send all news of food & beverage outlet openings, together with images, menus, video etc to Martin@MoodieDavittReport.com to ensure unrivalled global exposure. The company also organises the annual Airport Food & Beverage (FAB) Conference & Awards. This year’s FAB took place on 20-21 June in Helsinki. FAB 2019 will be held in Dallas, Texas, on 26-27 June.
