Lagardère Travel Retail (LTR) announced yesterday that that is ‘continuing its exit from the press distribution and integrated retail business’ with the recent signed agreement to sell its Belgium Distribution subsidiary to bpost group (Belgian postal operator-Ed).

 

The company says that while the proposed sale remains subject to regulatory approvals, it is in line with the retailer’s core focus strategy to concentrate on travel retail businesses that offer the main growth in future.

 

In a formal statement, the company added: “This agreement will allow bpost to pursue to its growth strategy, based mainly on diversification through new activities in the convenience store sector.

 

 

“The current bpost and Lagardère Travel Retail chains will retain their specific features and their product lines. A franchising agreement for the distribution and operation of Lagardère group brands (Relay, Hubiz, So Coffee, etc.) in Belgium will also be entered into between the two parties concerned.”

 

At present, Lagardère Travel Retail also distributes newspapers and magazines to some 5, 345 points of sale and has built up a network of some 735 parcel pick-up and delivery points in Belgium under the Kariboo! brand, as well as other value-added e-commerce solutions. [The businesses covered by this divestment project generated consolidated revenues of about €440m/$491m in 2014-Ed].

 

This acquisition project applies to 100% of the capital of LS Distribution Benelux and AMP, which posted consolidated turnover of €440m in 2014. bpost and the acquired entities will remain separate with the aim of developing the business, although synergies may be realized where that adds value for the group.

 

 

Koen Van Gerven, CEO of bpost, said: “This acquisition will enable bpost to truly diversify its activities in a profitable growth business responding to the new customer needs to have always more proximity and convenience. It also enables us to face up to the intense competition on the Belgian parcels market.”

 

LTR’s existing press distribution and integrated retail business includes around 220 POS at retail in Belgium, with the group of companies involved at airports, railway stations and other locations including the key Press Shop and Relay brands. The company also distributes newspapers and magazines where it already has a business relationship with bpost.

 

 

 

 

 

 

 

 

 

This proposed sale is in line with Lagardère Travel Retail’s exit from the press distribution and integrated retail business in Spain last October when it sold its Spanish Distribution subsidiary SGEL to Springwater Capital, a private investment firm.

 

However, travel retail activities in Spain and Portugal were not included in this transaction with the activities divested representing consolidated sales of approximately €300m ($335m).

 

The process of selling Lagardère Travel Retail’s other press distribution and integrated retail companies in Hungary and Canada is understood to be ongoing.

 

The travel retailer ranked fourth in TRBusiness exclusive Top 10 International Operators 2015 report with sales of $3.60bn in 2014, behind Dufry with $4.2BN; DFS Group with $4.20bn; and Lotte Duty Free with $4.02bn.