Lagardère Travel Retail has agreed to acquire airport travel retail major Paradies from Freeman Spogli for $530m.
The acquisition will combine activities of Lagardère Travel Retail in North America and Paradies is expected to create the second-largest player in North America, where airport travel retail market is estimated to be $7.7bn.
The combined company will have estimated annual sales of around $800m.
Paradies currently operates stores in a large number of US and Canadian airports including Atlanta, Los Angeles, Chicago, Dallas-Fort Worth, Denver, New York-JFK, San Francisco, Charlotte, Las Vegas and Phoenix.
Through long-term concessions, Paradies currently operates in more than 76 airports.
With this acquisition, Lagardère will enter a new phase in its growth strategy by acquiring a major presence in North America, a market driven by traffic growth and the addition of new retail space in airports.
Lagardère Travel Retail chairman and CEO Dag Rasmussen said: "This acquisition transforms the presence of Lagardère Travel Retail in North America. It significantly strengthens our business and allows us to expand our concession portfolio and to develop relationships with our brand partners and suppliers.
"We are very pleased to welcome Gregg Paradies and all his employees to the Group. Together, we will aim to create a regional leader and break new ground."