Sony Pixel Power calrec Sony

Lagardre Travel Retail signs an agreement to acquire International Duty Free (IDF), Belgium s leading Travel Retail operator also present in Luxembourg and Kenya

25/07/2019

Lagard re Travel Retail signs an agreement to acquire International Duty Free (IDF), Belgium s leading Travel Retail operator also present in Luxembourg and Kenya This new acquisition will enable the Lagard re group to strengthen its leadership position on the Travel Retail market by reinvesting proceeds from disposals.

The completion of this transaction is subject to a number of customary conditions, including regulatory approval.

Consolidation of IDF's businesses would bring Lagard re Travel Retail's annual revenue to 5.3 billion(1), cementing its position as the world's second-largest Travel Retail(2) operator and third-largest operator of Duty Free & Fashion airport points of sale.

The acquisition of IDF enables Lagard re Travel Retail to extend its presence to a further leading European hub in Brussels with high-quality operations and recently refurbished stores. It also helps the Group strengthen its positions in Luxembourg and in Africa with its entry into Kenya.

The amount of the transaction is 250 million.

IDF is a wholly-owned subsidiary of Compagnie Nationale Portefeuille (CNP) and since its creation in 1958 has been the operator of Belgian Sky Shops, the first tax free store at Brussels airport, and leader of the Duty Free & Fashion market in Belgium.

IDF holds long-term contracts and currently operates more than 30 boutiques, including 25 Duty Free, Fashion and Confectionery points of sale at Brussels airport, two Duty Free stores at Charleroi airport, and The Belgian Chocolate House premium confectionery stores at the principal Gare du Midi rail station in Brussels, in the centre of Antwerp and in Luxembourg. It also operates a boutique in Kenya.

IDF generated total revenue of 183 million in 2018.

Besides The Belgian Chocolate House, IDF's portfolio chiefly comprises its own brands, including Fashion Studio, The Luxury Hall, Summer Time and Precious Time (Fashion and Watches) and Epicure (Gastronomy). The portfolio also includes partnerships with premium brands such as Longchamp, Tumi and Hugo Boss in the Fashion segment and MAC, Jo Malone and Rituals in Perfumes and Cosmetics.

The close affinity between the two companies in terms of culture and strategy will help ensure the acquisition's success

The IDF acquisition will enhance Lagard re Travel Retail's strategy, with IDF's culture and operating standards fully aligned with the four pillars of the division's approach:

Operational excellence: IDF brings a high-quality portfolio of stores that have been recently refurbished or are currently in refurbishment, along with the highest operating standards, in line with Lagard re Travel Retails's requirements.

Partner of choice: IDF has a close working relationship with both its concession grantors and its suppliers.

Profitable growth: IDF's businesses are profitable and will be accretive to all of the division's financial ratios, with long-term contracts and an effective operational management team.

Agile and efficient organisation: IDF's entrepreneurial and innovative culture is closely aligned with Lagard re Travel Retail's own, which allows greater operating agility.

To facilitate the acquisition's success and IDF's integration into the Lagard re group, IDF's experienced, high-profile management team will remain in the driving seat of the company.

A value-generating transaction

This acquisition has been valued at 250 million(3), or around 8x IDF's pro forma EBITDA(4) for 2020, factoring in 7 million in recurring synergies expected to be unlocked through to 2022. It is expected to deliver solid cash generation and be accretive to Lagard re Travel Retail's recurring EBIT, as well as extending the average life of the Group's concession agreements.

The combination of the operating and sales expertise of both IDF and Lagard re Travel Retail should significantly boost sales and help to unlock the recurring synergies.

The IDF acquisition will help Lagard re Travel Retail bolster its presence in the fast-growing international premium chocolate segment by leveraging IDF's experience and privileged contacts with suppliers in this segment as well as the premium The Belgian Chocolate House concept, which can be developed on new markets.

The financing of this acquisition falls within the scope of the re-use of the proceeds from disposals, as part of the Group's strategic refocusing launched in 2018.

The transaction is expected to be finalised during the fourth quarter of 2019.

Xavier Le Clef, Managing Director of CNP and Chairman of IDF:

IDF is special to us at CNP because we have supported its development since 1991. We're now passing the baton to Lagard re Travel Retail, convinced that they will be a great partner in maintaining IDF's growth over the long term while preserving its unique DNA as well as its strong commitment to its employees and partners. I'd like to thank the IDF teams wholeheartedly for their amazing work all these years as they built the company up to occupy the leadership position it now enjoys in the Travel Retail market.

Dag Rasmussen, Chairman and Chief Executive Officer of Lagard re Travel Retail:

The acquisition has cemented our position as the world's third-largest operator of Duty Free airport points of sale and as the European leader in Travel Retail. We're delighted to be entering both the Belgian and Kenyan markets, which offer wonderful development opportunities, and at the same time stepping up our operations in Luxembourg. Above all, we are confident that IDF's operational expertise and entrepreneurial mind-set will ensure its successful integration into Lagard re Travel Retail and contribute to the achievement of our strategic objectives.

(1) Based on 100% of 2018 revenue, including the pro fo
LINK: http://www.lagardere.com/index.php?coe_i_id=363&idpress=7717...
See more stories from lagard

More from Lagardere

25/02/2021

Full-Year 2020 Results

Full-Year 2020 Results Lagard re group restores profitability and cash generation in second-half 2020, despite the health crisis thanks to the adaption of i...

22/02/2021

Lagardre Travel Retail seizes new growth opportunities in South America by winning major Foodservice tender in Chile

Lagard re Travel Retail seizes new growth opportunities in South America by winn...

09/02/2021

Lagardre Travel Retail grows its African footprint with new exclusive Duty Free concession in Tanzania

Lagard re Travel Retail grows its African footprint with new exclusive Duty Free...

08/02/2021

Lagardre Travel Retail accelerates expansion in China with new downtown Duty Free store in Sanya, Hainan

Lagard re Travel Retail accelerates expansion in China with new downtown Duty Fr...

04/01/2021

Lagardre secures and strengthens its liquidity position

Lagard re secures and strengthens its liquidity position Arrangement of a 465 million government-backed loan Amendment to revolving credit facility with ter...

17/12/2020

Lagardre SCA welcomes the decision of the Paris Court of Appeal

Lagard re SCA welcomes the decision of the Paris Court of Appeal Lagard re SCA welcomes the decision announced today by the Paris Court of Appeal (Cour d Appe...

20/11/2020

Change of custodian for Lagardre SCA registered shares

Change of custodian for Lagard re SCA registered shares Lagard re SCA would like to inform its shareholders that Soci t G n rale Securities Services has been...

14/11/2020

Paradies Lagardre announces realignment of Retail and Dining Divisions

Paradies Lagard re announces realignment of Retail and Dining Divisions Paradies Lagard re announces realignment of executive roles, enhances leadership withi...

10/11/2020

Leading travel essentials brand Relay unveils new generation concept & brand identity

Leading travel essentials brand Relay unveils new generation concept & brand ide...

06/11/2020

Third-Quarter 2020 Revenue

Third-Quarter 2020 Revenue Impacts of the pandemic in third-quarter 2020 mitigated by the Lagard re group s diversified business base Group revenue down ...

05/11/2020

Lagardre Travel Retail adds new Berlin airport to its German footprint

Lagard re Travel Retail adds new Berlin airport to its German footprint Lagard re Travel Retail is pleased to announce it has opened 10 Travel Essentials stor...

05/11/2020

An employee representative member joins the Supervisory Board of Lagardre SCA

An employee representative member joins the Supervisory Board of Lagard re SCA The Supervisory Board of Lagard re SCA now includes an employee representative ...

03/11/2020

Lagardre finalises the sale of Lagardre Studios to Mediawan

Lagard re finalises the sale of Lagard re Studios to Mediawan As part of its strategic refocusing, and as announced on 22 June 2020, the Lagard re group final...

31/10/2020

Lagardre Travel Retail capitalizes on the travel retail recovery in China with new Luxury Beauty & Fashion store openings

Lagard re Travel Retail capitalizes on the travel retail recovery in China with ...

28/10/2020

Lagardre Travel Retail appoints new CEO for Senegal & Gabon

Lagard re Travel Retail appoints new CEO for Senegal & Gabon Lagard re Travel Retail today announces the appointment of Sountou Bousso as Chief Executive Of...

17/10/2020

Lagardre Travel Retail makes changes to its Executive team

Lagard re Travel Retail makes changes to its Executive team Lagard re Travel Retail today announces several changes within its global Executive Committee orga...

15/10/2020

Lagardre welcomes the decision of the President of the Paris Commercial Court

Lagard re welcomes the decision of the President of the Paris Commercial Court Lagard re SCA notes the decision announced today by the President of the Paris ...

08/08/2020

Lagardre Travel Retail opens first location in Japan in partnership with Pierre Herm

Lagard re Travel Retail opens first location in Japan in partnership with Pierre...

04/08/2020

Lagardre Travel Retail opens a new Aelia Duty Free shop at Cagliari airport

Lagard re Travel Retail opens a new Aelia Duty Free shop at Cagliari airport Lagard re Travel Retail is pleased to announce that a new Aelia Duty Free Shop ...

04/08/2020

Pick & Go: a new global food-to-go concept by Lagardre Travel Retail

Pick & Go: a new global food-to-go concept by Lagard re Travel Retail Lagard re Travel Retail introduces Pick & Go, a new global catering offer available to...

30/07/2020

First-Half 2020 Results

First-Half 2020 Results Lagard re holds firm due on its diversified business base in a global economic environment that has been destabilised by the impacts of ...

23/06/2020

Press release

Press release Contrary to press reports over the past few days, the Lagard re group wishes to clarify that no decision has been taken to sell Lagard re Live E...

22/06/2020

Lagardre takes a further decisive step in its strategic refocusing with the sale of Lagardre Studios to Mediawan

Lagard re takes a further decisive step in its strategic refocusing with the sal...

05/06/2020

The Jean-Luc Lagardre Foundation reveals its 30th cohort of grant winners

The Jean-Luc Lagard re Foundation reveals its 30th cohort of grant winners From left to right: (1st row) Ana s Combeau (Bookseller grant), Pierre Leroy (co-...

06/05/2020

Results of the 2020 Annual Ordinary and Extraordinary General Meeting of Lagardre SCA

Results of the 2020 Annual Ordinary and Extraordinary General Meeting of Lagard ...

02/05/2020

Letter to shareholders

Letter to shareholders Dear Madam, dear Sir, dear shareholders, Our General Meeting, which has been convened for 5 May 2020, is unprecedented in the history...

30/04/2020

First-Quarter 2020 Revenue

First-Quarter 2020 Revenue Lagard re posts a resilient performance in the first quarter of 2020 Revenue at 1,361 million, down 12.5% like for like(1) in t...

29/04/2020

Sverine Lanthier joins Lagardre Travel Retail as Chief Strategy and Development Officer

S verine Lanthier joins Lagard re Travel Retail as Chief Strategy and Developmen...

23/04/2020

Lagardre finalises the sale of Lagardre Sports to H.I.G. Capital

Lagard re finalises the sale of Lagard re Sports to H.I.G. Capital As part of its strategic refocusing, and as announced on 16 December 2019, today the Lagard...

28/03/2020

Press release relating to regulated information - Publication of the Universal Registration Document - Fiscal Year 2019

Press release relating to regulated information - Publication of the Universal R...

26/03/2020

Suspension of market guidance and change in the dividend proposed to the General Meeting of 5 May 2020, in light of the Covid-19 pandemic

Suspension of market guidance and change in the dividend proposed to the General...

13/03/2020

Postponement of the Investor Day

Postponement of the Investor Day Following the new measures taken by the French government limiting gatherings and events, the Investor Day initially planned ...

27/02/2020

Nicolas Sarkozy and Guillaume Pepy join the Supervisory Board of Lagardre SCA

Nicolas Sarkozy and Guillaume Pepy join the Supervisory Board of Lagard re SCA At its meeting this morning, the Supervisory Board, on the recommendation of th...

27/02/2020

Full-Year 2019 Results

Full-Year 2019 Results Revenue up 4.5% like for like(1) for the target scope and recurring EBIT(1) for the target scope(2) up 5.6%(3) to 361 million Sharp...

09/01/2020

Half-year liquidity contract statement for LAGARDERE SCA

Half-year liquidity contract statement for LAGARDERE SCA LAGARD RE SCA French partnership limited by shares with a capital of 799 913 044.60 Registered of...

16/12/2019

Lagardre Sports - Media Release

Lagard re Sports - Media Release Following the decision by CAF to unilaterally cancel its agency agreement with Lagard re Sports, Lagard re, in accordance wit...

05/12/2019

Chairmanship of the Supervisory Board of Lagardre SCA

Chairmanship of the Supervisory Board of Lagard re SCA At its meeting this morning, the Supervisory Board decided on the recommendation of the Appointments, R...

07/11/2019

Third-quarter 2019 revenue

Third-quarter 2019 revenue Revenue up 4.1% like for like to 2,000 million(1), driven by growth of more than 6% at Lagard re Publishing and Lagard re Travel...

06/11/2019

Lagardre contests the CAF's unilateral decision to cancel its agency agreement with Lagardre Sports

Lagard re contests the CAF's unilateral decision to cancel its agency agreem...

25/10/2019

The 38th album in the adventures of Astrix

The 38th album in the adventures of Ast rix With an anniversary and the publication of a long-awaited new album, 2019 is definitely a BIG YEAR for Asterix! ...

24/10/2019

Hachette Livre in exclusive negotiations to acquire a majority stake in Blackrock Games

Hachette Livre in exclusive negotiations to acquire a majority stake in Blackroc...

10/10/2019

Lagardre seeks damages of 84 million from activist fund Amber Capital

Lagard re seeks damages of 84 million from activist fund Amber Capital Lagard re SCA and Lagard re Capital & Management are seeking nearly 84 million in dam...

10/10/2019

Lagardre places a seven-year bond issue for 500 million

Lagard re places a seven-year bond issue for 500 million Lagard re has today placed a 500 million, seven-year bond issue due in October 2026 and paying an a...

26/09/2019

Hachette Livre has signed the ABC's Charter for Accessible Publishing

Hachette Livre has signed the ABC's Charter for Accessible Publishing Hachette Livre has signed the Accessible Books Consortium (ABC) Charter. By signing ...

19/09/2019

Lagardre Travel Retail completes the acquisition of International Duty Free (IDF), Belgium s leading Travel Retail operator

Lagard re Travel Retail completes the acquisition of International Duty Free (ID...

18/09/2019

Audencia students are a source of inspiration for the Lagardre group

Audencia students are a source of inspiration for the Lagard re group A partner of the prestigious Audencia Business School since 2015, the Lagard re group pa...