(BFM Bourse) – Confirming the rumors circulating since last spring, Dufy and Autogrill formalized their merger project on Monday, to create a new leader in the experience dedicated to travelers.
The Basel group Dufry, the claimed leader of duty-free shops, and the Italian concession catering group Autogrill unveiled their merger project on Monday, which should give birth to a giant weighing 13.6 billion Swiss francs (13.6 billion euros). euros) of turnover.
Together, Dufry and Autogrill (controlled by the Benetton family) will operate 5,500 outlets in 1,200 airports and other travel locations in 75 countries, Dufry said in a statement released overnight Sunday to Monday. The new entity will have some 60,000 employees for combined revenues of more than 12 billion euros (taking pre-pandemic figures).
The transaction will be effected by exchange of shares. Autogrill’s reference shareholder, the holding company Edizione, controlled by the Benetton family, will transfer its 50.3% stake in Autogrill to Dufry at a ratio of 0.158 Dufry shares for 1 Autogrill share.
Dufry will then launch a buyback offer on the remaining Autogrill shares. Minority shareholders will be offered to be paid in shares on the same basis of exchanges or in cash up to 6.33 euros per Autogrill share.
At the end of the operation, Edizione will become Dufry’s reference shareholder with a stake of around 20 to 25%.
This merger, subject to regulatory authorization, must first be approved by Dufry’s shareholders at an extraordinary general meeting.
“This agreement promotes the growth and development of Autogrill, an asset that will remain strategic for Edizione”, declared its president Alessandro Benetton, quoted in the Italian group’s press release, stressing that this merger “will make it possible to create the world champion of the sector “.
Dufry currently operates a network of 2,300 duty-free shops at airports, cruise ships and marine terminals.
Autogrill, the world’s number one catering service for travellers, operates a network of 3,300 points of sale in 30 countries. It is present in 139 airports as well as at many motorway rest areas.
“We are in the process of transforming our industry,” said Xavier Rossinyol, the general manager of Dufry, quoted in the press release, insisting on the fact that this merger will make it possible to further diversify Dufry’s activities.
Rumors of a rapprochement between Dufry and Autogrill had already been circulating since April. But according to the Bloomberg agency, the discussions stumbled on the valuation gap between the two groups.
The Swiss group had been badly shaken by the Covid-19 pandemic, its sales collapsing in particular during the first confinement. In April 2020, when the planes were grounded, its turnover had plummeted by 94%, forcing the group to launch emergency measures to withstand the shock while waiting for travel to resume. The company had since sought to diversify its business.
“If a grouping makes sense in airports,” reacted Pascal Furger, analyst at Vontobel, in a stock commentary, “the added value in business concerning highways is more difficult to justify,” he believes. This merger will strengthen the Swiss group’s offer in its key markets in Europe and North America, he notes, but its presence in Asia Pacific, “weak” according to him, will remain “unchanged”.
In 2015, the Benetton family had already sold its duty-free airport distribution brand, called World Duty Free, to Dufry for 1.3 billion euros.
(With AFP)
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