Hachette strengthens travel-retail with Virgin Megastore acquisition

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Leading French travel retailer Hachette Distribution Services (HDS) and Richard Branson's group Virgin finalised an agreement this morning for the acquision of Virgin's 16 Megastores in France. The deal, made through the HDS parent company Lagardére Media includes a licence to use the Virgin Megastore brand in public transport areas and the HDS travel-retail network. Lagardére Media also acquired an exclusive licence of unlimited duration for the use of the Virgin brand in the distribution of gifts and cultural products across certain European countries.

The move will greatly strengthen the music and gift offer at the HDS airport and rail station retail locations. It also provides HDS with a critical mass in the French music retail sector and will boost the number of its dedicated multimedia outlets to 37 stores, with new openings to follow in the next two years. The former chairman and ceo of the Virgin Stores French operation, Jean-Noel Reinhardt, will take up the post of chairman of the new organisation combining Virgin and the other HDS subsidiaries Extrapole and Furet du Nord.

Chairman and ceo of Hachette Distribution Services, Jean-Louis Nachury commented: "Our agreement with Virgin provides us with a tremendous opportunity to step up the growth of our strategic businesses in France and abroad."

• HDS is one of the world's leading travel retailers and operates a network of 3,600 stores mostly in station and airport locations trading as Aeroboutique Duty Free (now renamed Aelia), Relay, CZ Press, HDS Polska and Bauer Press in Germany.