Lagardère Travel Retail closed the acquisition of Paradies – a leading retailer and food and beverage operator at airports in the United States and Canada – after receiving all the required authorisations.

 

As previously reported on 11 August, this acquisition will combine the activities of Paradies and Lagardère Travel Retail in North America, creating the region’s second-largest operator (no 2 in North America), with total revenue of around USD 800 million in 2015.

 

“Thanks to the complementary nature of the two companies’ operating locations and concepts, this transaction will generate commercial and financial synergies in the North American market, which offers attractive growth prospects,” says Lagardère Travel Retail.

 

Paradies is expected to be consolidated in the Lagardère financial statements from 1 November 2015.

 

The integration of the two companies will be led by Paradies President and CEO Gregg Paradies, who will remain at the helm of the combined entity. The acquisition value is $530m, on a cash-free/debt-free basis.

 

“This value-enhancing transaction represents an important step in the strategic transformation of Lagardère Travel Retail, which will also achieve critical mass in North America, with a presence in more than 100 airports,” adds the company.

 

“Paradies is known for the quality of its operations and teams, and has an attractive growth profile, thanks to its portfolio of strong, widely-known brands.

 

In its 2014/2015 financial year, Paradies generated consolidated net sales of $515m (€471m).”