The Autogrill Group reported today that it is to buy Stellar Partners’ retail business through its subsidiary convenience retail operation HMSHost.

 

Autogrill maintains that the transaction will strengthen its group business in US airports by extending its offer to the convenience retail segment, with ‘convenience in this context referencing newspapers, merchandising and food products.

 

Stellar Partners also operates the duty free stores at Tampa International Airport and St Petersburg Clearwater International.

 

 

The acquisition is expected to be completed by the end of 2016, subject to approvals and authorisations from Stellar Partners’ respective airport landlords, at which time Stellar Partners will become a wholly-owned subsidiary of HMSHost.

 

MANAGERIAL AUTONOMY REMAINS…

Interestingly, Autogrill says the company will retain its managerial autonomy under the direction of long-time President and CEO Susan Stackhouse and Senior Vice-President and COO Ramon Bosquez.

 

Stellar Partners currently operates 38 points of sale in ten US airports, including Tampa, Orlando, Philadelphia, Miami, San Diego and Washington Dulles international airports, generating an estimated annual sales turnover of $38m and an EBITDA margin of 11%, according to Autogrill.

 

Stellar Partners also manages various proprietary brands, including Stellar News and Stellar Books.

 

Commenting on the proposed transaction, HMSHost President and CEO Steve Johnson said: “The imminent entry to our Group of Stellar Partners, considered one of the best small size airport convenience retail operators, is a source of great satisfaction to us.

 

US AIRPORTS CONVENIENCE VALUED AT $1.5BN

“I’ve known Susan Stackhouse and Ramon Bosquez for many years and I’ll be happy to work with them to grow Stellar in North American airports and strengthen HMSHost’s position in US airport convenience retailing, a market of great potential with sales estimated at around $1.5bn. Susan and Ramon’s know-know will also help strengthen our retail business in the motorway channel.”

 

 

Autogrill added that Stellar Partners was set up around 30 years ago when Susan Stackhouse bought the point of sale she was managing at Tampa International Airport.

 

The business took off after winning a contract to open a news & gift store at Orlando and has since built up a formidable portfolio of well known brands over the years. Stackhouse and her team have also received numerous awards from the trade – most recently the Airport Revenue News ‘2016 Best Overall Retailer and Best News & Gift Operator’.

 

STELLAR PARTNERS’ RETAIL LOCATIONS:

In addition, it has outlets at Bangor Airport (Stellar News/departures); George Bush Intercontinental (Mindworks/Terminal E); JFK International (Ron Jon Surf Shop/JetBlue Terminal 5); Miami Airport (Stellar News/Terminal J; Mercado TF; Mindworks TE; Ron Jon Surf Shop TG); Orlando (Stellar News Airside 4; Ron Jon Surf Shop TB; Swarovski TA); Philadelphia Airport (Stellar News TD, D/E, T, TF; Stellar News & Market TF; Stellar Books D/E Connector; B-ICONIC D/E Connector; Swarovski B/C Connector); San Diego International (Stellar News T2; Jer’s Chocolates T2; Mindworks T2; Stellar News Express T1; Swarovski T2; Old Town Market T2); St Petersburg Clearwater (Stellar News Main Term, Airside F; Stellar Duty Free Gates 2-6; Stellar News Express Gates 7-10); Tampa International (Stellar Duty Free, Airside E&F; Ron Jon Surf Shop, Main term 3rd Floor; Swarovski Main Term 3rd floor; Mindworks, Main Term, 3rd Floor); Washington Dulles (Stellar News Concourse Bx2 locations; Swarovski Concourse B).