HMSHost to buy Canadian airport caterer

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John Rimmer

8-Jun-2006

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The US retail and catering concessionaire has agreed to buy the airport restaurant business of Canadian group Cara Operations

US retailer and caterer HMSHost, part of the Autogrill Group, has signed a deal to purchase the airport catering business of Canadian restaurant operator Cara Operations. The $62m deal will give Host control of catering contracts at nine Canadian airports: Toronto, Vancouver, Montreal, Edmonton, Kamloops, Winnipeg, Calgary, Saskatoon and Ottawa. Host said the business was worth about C$74m ($67.3m) in yearly sales and C$9m ($8.2m) in earnings before interest, taxation, depreciation and amortisation. Cara runs about 90 food and beverage and retail outlets across the nine airports.

Host president and CEO Elie Maalouf said: "We are very excited about this opportunity to provide a seamless transition for airport clients as Cara exits the airport concession business to concentrate on its core business. Our focus will be on working closely with Cara to minimise any potential disruptions to the business and airport customers, while providing existing employees with future growth opportunities within Host. This transaction provides assurance that airports, travellers and Cara's airport employees will all be well served, and it provides a solid addition to our existing airport operations at Calgary, Edmonton, Halifax, Montreal, Toronto and Vancouver. We look forward to reaching new levels of operating excellence."

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