Autogrill to combine global purchasing function by early 2009

Gavin Lipsith

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The move is part of a plan to fully integrate the operations of Aldeasa, Alpha and World Duty Free by 2010

Italian conglomerate Autogrill aims to integrate the global purchasing of World Duty Free, Aldeasa and Alpha Airports Group by the first quarter of 2009, the company told investors at a presentation in London today. The company outlined a two-step integration process with the first step focussing on the UK operations, with World Duty Free absorbing Alpha’s business at regional UK airports; international operations, with Aldeasa absorbing Alpha’s non-UK airport business; and the three companies’ combined global purchasing.

On the global purchasing project, Autogrill head of integration Silvano Delnegro said that the analytical phase was now completed and Autogrill would begin negotiating with its suppliers in September, with the aim of concluding the process by early 2009. He added that all three companies purchase several identical skus, offering a big opportunity for cost savings.

Meanwhile, WDF and Alpha in the UK will share one headquarters, one management team and one infrastructure by early 2009, with Alpha’s shops “integrated into the WDF platform”.

Delnegro added that in the international operation, the US businesses of Aldeasa and Alpha would be integrated by November, and the Asian businesses by the first quarter of 2009.

Autogrill expects synergies of €20m ($31.9m) in 2009, and a further €25m ($39.8m) by 2010 through the integration process.

Click here to read the full presentation. Keep an eye on DFNIonline.com for more comment and reaction.