Advent acquires Hudson Group

Gavin Lipsith

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One of the world’s biggest investors in airport retail concessionaires extends its portfolio, acquiring the North American news and gifts retailer

Private equity firm Advent International has acquired a majority stake in North American speciality retailer Hudson Group. Advent, which holds a majority share in Dufry Group and has several other significant travel-retail related investments, said that it hoped its backing would aid the company’s growth in the US and overseas.

Hudson Group, which operates over 550 newsstands, bookstores, cafes and specialty retail concessions in 69 airports and travel locations throughout the US and Canada, said that Advent’s participation would “leverage its position as the premier travel retailer in North America, enabling future strategic acquisitions and the global expansion of the brand”. Hudson anticipates revenues to surpass $630m this year.

The Hudson management team, including president and founder Mario DiDomizio and COO Joseph DiDomizio, will stay in place after the acquisition, which the parties said is “is subject to certain approvals and customary closing conditions”. Joseph DiDomizio said: “We selected Advent because of their specialisation in retail and airport-related investments worldwide. With Advent’s financial strength and industry expertise, Hudson Group will be able to take our business to an entirely new level of performance, creating tremendous opportunities for our employees, partners and customers.”

David Mussafer, managing director and head of Advent International’s North American deal group, said: “Hudson’s successful track record in airport retailing speaks for itself – the company has been a driving force in changing the face of airport concessions. We are excited to partner with them to help build on their success and expand the company domestically and overseas.”

Advent’s previous investments in travel-retail and catering concessions include global travel retailer Dufry Group; Brazilian retailer Brasif, which was integrated into Dufry South America; Mexican duty-free retailer Aeroboutiques; Aerocomidas, the Mexican airport restaurant and bar operator; Grupo RA, which operates restaurant concessions in Brazil’s main airports; and La Mansión, a leading casual dining restaurant chain in Mexico that has expanded into airports. Its investments in airport concessions include Fumisa, the commercial operator of Mexico City International airport; Aeroplazas, commercial developer of the Puerto Vallarta and Guadalajara airports; and AMAIT, operator of the Toluca International airport in Mexico.