T Galleria Okinawa (Naha’s Okinawa Downtown Galleria).

Avolta has entered into an agreement with DFS to acquire 100% of its operations in Okinawa, marking the company’s entry to the Japanese travel retail market.

DFS Okinawa, part of DFS, majority-owned by LVMH and with a minority stake held by the Miller family, operates airport and downtown retail locations across Naha Airport’s international and domestic terminals and Naha’s Okinawa Downtown Galleria, including long-term contracts with an average length of more than 10 years.

Avolta highlighted the location’s ‘strong and resilient’ tourism profile. Indeed, DFS Okinawa generated revenues corresponding to around 10% of Avolta’s 2025 APAC business, according to the company.

The move follows Avolta’s recently announced food & beverage (F&B) operations in the country at KIX.

“This acquisition will represent a deliberate step into the Japanese duty-free market following our recent entry into F&B, as it will further strengthen our position in the wider APAC region and will add to our geographical diversification,” said Xavier Rossinyol, CEO of Avolta.

“It will give us access to an attractive customer base and high-quality assets, while remaining fully consistent with our disciplined approach to capital allocation.

“At the same time, it will support the continued development of our data capabilities and digital platform, and will expand our brand portfolio, all together brought to life by our tremendous team on the ground.

“I thank DFS for the opportunity to build on this long and successful presence in Okinawa and look forward to working with our teams and partners to carry this impressive heritage forward.”

Avotla states the transaction will be funded with available cash on balance sheet and is expected to have a ‘limited impact on the company’s leverage (approximately 0.1x)’. Furthermore, it is expected to ‘be immediately accretive to the group’s EBITDA margin, earnings per share, equity free cash flow and ROIC’.

The Avolta-issued statement on the acquisition also notes that it is a ‘rare opportunity to enter Japan at scale through an established, cash-generative platform, with exposure to airport and downtown travel flows, luxury-led demand and long-term concession visibility, fully aligned with its disciplined capital allocation framework’.

The new business will leverage Avolta’s existing regional capabilities, allowing for a quick integration, while building on a long-standing global relationship with LVMH.

Closing is subject to customary conditions precedent, with closing expected during Q3 2026.

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