WHSmith to acquire US travel retailer Marshall Retail Group in $400m deal
By Andrew Pentol |
WHSmith has signed an agreement to acquire US travel retailer Marshall Retail Group (MRG) for $400m on a cash and debt free basis.
According to the company, the transaction, which is subject to customary conditions and scheduled for completion by Q1 2020 will double the size of its international travel business. The pending acquisition of MRG follows the $198m purchase of US digital accessories retailer inMotion last year.
WHSmith said MRG was due to open 36 stores between 2020 and 2024 of which 24 are expected next year. MRG is also on track to deliver double-digit sales CAGR from 2020 to 2024. This is as a result of the awarded stores which will add 75% to its retail square footage within airports, taking the total to around 43,000sq ft. Currently, MRG operates 170 shops in North America including 59 in airports.
US GROWTH OPPORTUNITY
Incoming WHSmith Group, Chief Executive, Carl Cowling, who assumes the role on 1 November 2019 said: “We are delighted to announce the proposed acquisition of Marshall Retail Group which is a highly successful US travel retailer with a fast growing airport business.
“This acquisition will accelerate the growth of our international travel business and combined with InMotion, the market leading digital accessories airport retailer that we acquired last year, will significantly enhance our scale and growth opportunities in the US, a large and fast growing travel retail market.”
He added: “This is an exciting value creating opportunity, entirely in line with our strategy. I would like to take this opportunity to welcome Michael Wilkins, CEO and the entire team across the Marshall Retail Group to the WHSmith Group and we look forward to working together to further develop our business across North America.”
Wilkins remarked: “I feel very proud to announce that we have reached an agreement with UK based retailer, WH Smith, to acquire Marshall Retail Group. WH Smith is one of the world’s oldest retailers with close to 1,600 stores across the world. This is an incredible milestone for our business and is testament to the outstanding team at MRG. We are proud of our success, particularly our recent growth in airports and I’m especially excited about the potential this unlocks for MRG in the years to come.
“We very much look forward to working with such an established and successful global business, with strong heritage, as we continue on our journey together to drive both businesses forward.”
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