Basel-headquartered travel retailer Dufry has signed an agreement to acquire 100% of The Nuance Group, the world’s 6th largest duty free and travel retail group, for a consideration of CHF 1.55 billion (USD 1.7 billion).
In 2013, the two businesses had a combined market share of close to 15% in the airport retail industry based on turnover. “The geographic presence of Nuance is complementary and strengthens Dufry’s positions in strategic key markets in the Mediterranean, North and Central Europe, Asia and the United States and Canada. As a result of the transaction, Dufry will emerge with a leading position in the Mediterranean in addition to its existing leadership positions in Latin America, Caribbean and North America. In addition, the acquisition will strengthen its diversified business in Asia with attractive locations that will provide a strong basis for further growth in the region,” said the Swiss group in a release.
Dufry will integrate Nuance into its organisation and expects to generate cost synergies starting in 2015, with the full run-rate impact of approximately CHF 70 million pre-tax synergies per year at the Nuance level being reached by 2016.
The transaction is expected to close in 3Q 2014.