Autogrill outlines WDF, Alpha and Aldeasa merger plan

Gavin Lipsith

Print Article E-Mail Article E-Mail Author

World Duty Free CEO Mark Riches will oversee the group’s UK airport business, Aldeasa CEO José María Palencia will steer Aldeasa and Alpha’s overseas airport business

Italian conglomerate Autogrill has outlined plans for the merger between World Duty Free, Alpha Airports Group and Aldeasa. As expected, the group’s airport retail businesses will be run through two separate divisions, with World Duty Free CEO Mark Riches heading the UK business and Aldeasa CEO José María Palencia charged with growing the business in the rest of the world.

Riches will oversee WDF’s existing business at BAA’s seven UK airports and Alpha’s business at UK airports including Manchester, Birmingham and Nottingham East Midlands—a business with total sales of more than £565m ($1.11bn). Riches commented that both Alpha UK Retail and World Duty Free are now trading ahead of forecast and while the marketplace is challenging, he is optimistic that the performance will remain strong.

Meanwhile, Palencia will add responsibility for Alpha’s businesses in the US and the Indian sub-continent to his responsibilities at Aldeasa, creating a division with total revenues of more than €880m ($1.38bn). Alpha will focus on developing its inflight retail and catering offer in the UK and international markets.

In a statement the company said: “We expect to leverage the benefits of being part of the largest global airport retail business as we immediately begin to identify opportunities as we work through the integration process.”

The company, which now boasts a travel-retail business with sales of about €1.7bn ($2.67bn) a year, expects to generate synergies of about €40m ($62.75m) a year through implementing company-wide best practices and leveraging economies of scale across geographical regions and sectors.