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Inflight Service President Peter Candell: “Thanks to this transaction Inflight Service establishes a platform in a new market region considered to be strategically important and with strong expansion opportunities.” |
SWEDEN/EAST EUROPE. SAS Trading, a wholly-owned subsidiary of the SAS Group and which operates the travel retail chain Euroshop, has signed an agreement for the sale of its Eastern European subsidiaries in Poland, Latvia and Estonia to Sweden-based Inflight Service Europe.
The Eastern European activities comprise SAS Trading Polska, SAS Trading Latvia and Scandinavian Travel Retail Eesti, which had combined total sales of SEK176 million and about 100 employees in 2004. The companies operate 12 airport shops under the Euroshop brand in Warsaw, Gdansk, Poznan, Tallinn and Riga.
SAS said that the East European travel retail business is a growing and profitable market and the continued positive development of SAS Trading’s Eastern European travel retail shops will be “further strengthened by an owner that has travel retail as its core business”.
Inflight Service Europe holds a leading position in the Nordic market, with retail customers at airports, on charter airlines and on ferries (see factfile below).
The Eastern European travel retail business within SAS Trading has enjoyed profitable growth, said Inflight Service. “Through the acquisition we will form a strong base in the segment airport shops,” said President Peter Candell.
“Furthermore we have identified good opportunities to develop the business in Eastern Europe from the solid base created by SAS Trading. Thanks to the transaction Inflight Service establishes a platform in a new market region considered to be strategically important and with strong expansion opportunities.”
In 2003 Inflight Service Europe and SAS Trading signed a co-operation agreement meaning that Inflight Service has been responsible for strategic purchasing and distribution to all SAS Trading airport shop outlets. “Following on from the co-operation there is a good understanding about the company’s business, as well as an infrastructure and organization already in place, which has facilitated our decision,” said Candell.
The agreement between the SAS Group and Inflight Service Europe is being reviewed by the relevant competition authorities. Providing approval is granted, the transaction will be concluded in spring 2005 with an accounting effect from 1 January 2005.
Subject to the completion of the transaction the remaining Scandinavian Euroshop activities will be organised under the subsidiary SAS Business Opportunities. This will be done with a view to increasing the possibilities of generating synergies while maintaining the flexibility for further development under SAS ownership and creating the conditions to enable divestment of one or more of the activities in the future.
The transaction represents a capital gain, but will not have any material effect on the SAS Group’s earnings in 2005.
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About Inflight Services
Inflight Service is a Sweden-based company that provides customers and travellers with products, services and business solutions in Nordic travel retail. The company has a leading position in the Nordic market with customers in airport shops, charter airlines and ferries. Inflight Service’s annual turnover in 2004 amounted to 1.3 billion SEK.
About Euroshop
Euroshop is SAS Trading’s retail chain. The business says its concept is to satisfy air passengers’ needs for goods and service with care, quality and customer-perceived price benefits. There are currently 19 Euroshop stores, at a total of 11 airports in three countries. Each shop is like a mini-department store, with well-known and exclusive brands represented in the areas of spirits, tobacco, perfume, fashion, confectionery and gifts.
