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Dufry/Advent complete Brasif dealDufry/Advent complete Brasif deal
John Rimmer
27-Mar-2006
Dufry Group and owner Advent International have completed the acquisition of leading Brazilian travel retailer Brasif Duty Free Shop
Dufry Group and its main shareholder Advent International have announced the completion of their acquisition of Brasif Duty Free Shop, Latin America's biggest travel retailer. The $500m deal includes the purchase of Brasif's logistics arm Eurotrade (RavenFox.com March 20). Dufry will control 80% of the company and Advent the remaining 20%. RavenFox.com understands that Brasif's destination merchandise business Brex Group is not part of the deal.Erwin Russel, a partner in Advent's São Paulo office, said: "Brasif is a very attractive strategic asset given its leading position in one of the highest growth duty-free markets in the world. The company is uniquely positioned with strong managerial, technical and financial resources."
Brasif's main shareholder Jonas Barcellos said: "I am very pleased with the agreement reached between Brasif and Advent/Dufry. Brazil offers a very attractive opportunity for growth in travel-retail, and the combination of Dufry's international position with Brasif's strong local tradition will enable the company to continue delivering value to its customers. The sale of Brasif fits well with our strategy to refocus the resources of our group and make important investments in agribusinesses as a whole, and specifically in sugar/alcohol mills."
Brasif's turnover in 2005 reached $262m, with growth over the past three years measured at 33% according to Advent. The retailer operates 51 stores: 29 duty-free outlets in Brazil's airports, 11 airport duty-paid stores including two in Miami and 11 high street outlets. Duty-free accounts for 87% of the group's turnover. Dufry's turnover last year stood at SFr949m ($735m).
Russel continued: "The new shareholders plan to implement a number of initiatives to improve and grow [Brasif's business], including joint purchasing with Dufry, streamlining logistics, optimising the merchandise assortment and store layout and increasing sales in departures shops."
Advent's previous investments in travel-retail and aviation include Mexican retailer Operadora de AeroBoutiques, Mexico City airport manager Inmobiliaria Fumisa, Mexican airport developer Aeroplazas and catering operator Aerocomidas. Aerocomidas and Operadora have subsequently been acquired by Areas, understood to have expressed an interest in acquiring Brasif itself.
For more details, comment and analysis, see DFNI April 1, out next week.
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(20-Mar-2006) - The Swiss group has signed a binding agreement to buy Latin America's biggest travel retailer along with its logistics division Eurotrade, hailed as "a great move" by Dufry CEO Julián Díaz
(1-Apr-2006) - BRAZIL. Dufry Group has taken a step closer to achieving its aim to become "the world's most profitable travel retailer" with the purchase of Brasif Duty Free Shop, Latin America's biggest operator
(25-Jan-2005) - The two companies, partners in the Sintres company which acquired 75% of Dufry last year, have agreed to split the remaining 25% of the Swiss retailer
(7-Jun-2007) - The private equity group has placed a further 12.33% of the retailer on the stock exchange, reducing its holding to 36.67%
(28-Oct-2005) - The powerful private equity group behind Dufry Group and Mexican airport caterer Aerocomidas has raised $375m to invest in new Latin American business