Dufry has signed an agreement to acquire 100% of The Nuance Group (“Nuance”) for a consideration of CHF 1.55 billion, on a debt- and cash-free basis.
Nuance is a global travel retailer and operates close to 75,000 square meters of retail space in 66 locations across 19 countries in Europe, Asia and North America. In 2013, Nuance generated a turnover of CHF 2.1 billion and an adjusted EBITDA of approximately CHF 156 million.
Excellent strategic fit with significant growth and value creation potential
Following completion, the acquisition will confirm Dufry as the leader in the global duty free and travel retail market, with a global and geographically diversified concession portfolio and strong positions in developed and emerging markets covering all continents.
In 2013, the two businesses had a combined market share of close to 15% in the airport retail industry based on turnover. The geographic presence of Nuance is complementary and strengthens Dufry’s positions in strategic key markets in the Mediterranean, North and Central Europe, Asia and the United States and Canada.
As a result of the transaction, Dufry will emerge with a leading position in the Mediterranean in addition to its existing leadership positions in Latin America, Caribbean and North America. In addition, the acquisition will strengthen its diversified business in Asia with attractive locations that will provide a strong basis for further growth in the region.
In the Mediterranean, the largest and most important tourist destination in the world, Nuance’s operations in Turkey, Malta and Portugal complement Dufry’s existing operations in the region, where Dufry has activities in eight countries, such as Italy, Greece, Spain, Morocco and Egypt.
In Eastern Europe, Dufry will have a strong market presence in Russia, and add activities in Bulgaria.
In North Western Europe, Dufry will become the preeminent travel retailer in Switzerland and have activities in Sweden as well as the UK, most notably at London Heathrow Airport.
The combination will also strengthen Dufry’s presence in Asia with Nuance’s leading presence in the region empowering the group’s positioning. Nuance’s concessions in mainland China, Hong Kong and Macau will be complementary to Dufry’s operations in mainland China, South Korea and Taiwan. In South East Asia, the combined entity will have a presence in Cambodia, Indonesia, Sri Lanka and Nuance will add airport retail activities in India and Malaysia. Overall, the combined business is creating an attractive platform for further development in this important region which has been one of Dufry’s key areas of growth.
In North America, Nuance operates mostly duty free formats in locations that fit well into Dufry’s existing retail network. The acquisition reinforces Dufry’s position in the United States and Canada and will help Dufry to further gain market share in the duty free and duty paid segments.