Swiss duty-free operator Dufry has entered into an agreement to acquire 100% stake in The Nuance Group, for $1.72bn on a debt- and cash-free basis.
Nuance is a global travel retailer and operates close to 75,000m² of retail space in 66 locations across 19 countries in Europe, Asia and North America.
Upon completion of the transaction, the acquisition will confirm Dufry as the leader in the global duty free and travel retail market, with a global and geographically diversified concession portfolio and strong positions in developed and emerging markets covering all continents.
It presently operates nearly 1,400 duty-free and duty-paid shops in airports, cruise lines, seaports, railway stations and downtown tourist areas.
Dufry’s CEO Julian Diaz said the combination of both organizations will further strengthen their current concession portfolio, adding new countries and operations that have a very strong fit with Dufry’s regional strategy.
“Nuance will reinforce our presence in Asia, Mediterranean, North and Central Europe and North America,” Diaz added.
“The acquisition of The Nuance Group by Dufry is a transformational deal not only for Dufry but also for the travel retail industry.”
In 2013, the two businesses had a combined market share of close to 15% in the airport retail industry based on turnover.
Dufry will integrate Nuance into its organization and expects to generate cost synergies starting in 2015.