Lagardère Services – the division of the French media giant Lagardère that controls LS Travel Retail – has started down the path of becoming a pure-play DF&TR operator with the disposal of its Swiss Press Distribution businesses.

 

Lagardère Services has agreed to sell its 65% stake in Lagardère Services Distribution Suisse [LSDS, formerly Payot Naville Distribution] its press distribution and integrated retail Swiss subsidiary – which has 180 points of sale – to Valora, the Europe-wide retailer and distributor for €110m ($136m). Tamedia Publications Romandes, the 35% shareholder, is also selling its stake.

 

Lagardère says: “This transaction represents a new step in Lagardère Services’ plans to sell off its press distribution and integrated retail activities.” These plans have been pipelined for some time in order to focus on the more profitable DF&TR business which last year accounted for 60% of Lagardère Services’ sales.

 

A DRAG ON EBIT

The distribution business was also a drag on profitability in 2013: overall, the recurring Ebit before associates of LS Travel Retail increased by €3m, but decreases of €11m in LS Distribution, pushed Lagardère Services’ overall Ebit down from €104m in 2012 to €96m in 2013.

 

LSDS had consolidated sales of approximately €313m in 2013 [excluding Payot and SI André Piller activities disposed respectively in July and September] and a recurring Ebit of €9.6m. The transaction is expected to be concluded once authorisation is received from the Swiss competition authorities.

 

Commenting on the sale of LSDS, Dag Rasmussen (left), CEO of Lagardère Services, says: “This transaction ensures a positive outlook for the company and its staff. I am sure that combining the two companies in this way will prove very beneficial to all stakeholders, be they publishers, business partners, landlords or customers.”