Announced on August 11, this acquisition will combine the activities of Paradies and Lagardère Travel Retail in North America, creating the region's second-largest operator, with total revenue of around $800 million in 2015.
According to Lagardère, thanks to the complementary nature of the two companies' operating locations and concepts, the transaction will generate commercial and financial synergies in the North American market, which offers attractive growth prospects.
Paradies is expected to be consolidated in the Lagardère financial statements from November 1, 2015.
The integration of the two companies will be led by Paradies’ president and CEO Gregg Paradies, who will remain at the helm of the combined entity.
The acquisition value is $530 million, on a cash-free/debt-free basis.
This value-enhancing transaction represents an important step in the strategic transformation of Lagardère Travel Retail, which will also achieve critical mass in North America, with a presence in more than 100 airports.
It notes that Paradies is known for the quality of its operations and teams, and has an attractive growth profile, thanks to its portfolio of strong, widely-known brands.
Talking back in August, Dag Rasmussen, chairman and CEO of Lagardère Travel Retail, said: "This acquisition transforms the presence of Lagardère Travel Retail in North America.
“It significantly strengthens our business and allows us to expand our concession portfolio and to develop relationships with our brand partners and suppliers.
“We are very pleased to welcome Gregg Paradies and all his employees to the Group. Together, we will aim to create a regional leader and break new ground."
In its 2014/2015 financial year, Paradies generated consolidated net sales of $515 million.
“This significant acquisition represents a major step forward in Lagardère Travel Retail's growth strategy,” said the travel retail operator.
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