World Duty Free and Alpha heads react to Autogrill deals

Two of the key figures in today’s Autogrill-World Duty Free deal have told DFNIonline that they are confident the acquisition will deliver strong opportunities for both parties. World Duty Free (WDF) managing director Mark Riches said the deal marks the start of the retailer’s “next exciting chapter”, while Alpha Airports Group CEO Peter Williams said that the deal, combined with Autogrill’s acquisition of the remaining shares in Aldeasa it did not own, takes Autogrill’s travel-retail business “to a new level”.

 

Riches expressed his satisfaction with the choice of new owner, although he added that there were other good potential owners of WDF in the bidding. He told DFNIonline: “I think it’s a very good result, Autogrill is an excellent company and now we are embarking on a the next very exciting chapter of World Duty Free.”

 

Riches added that all three Autogrill-owned travel-retail operations are “successful in their own right”, and that Autogrill would clearly now look at making synergies.

 

Williams commented: “The deal gives Autogrill a unique stronghold particularly in the UK and Spain, and a solid and well-established base from which to grow the businesses. The Alpha and WDF operations in the UK are very similar, so clearly there is an exercise to be done with regard to people, premises and so on.”

 

For the immediate future, WDF has plenty to focus on with the opening of London Heathrow terminal five later this month. And Alpha is also in the midst of preparing to unveil its greatly anticipated new-look stores at Manchester, Nottingham and East Midlands airports. But both Williams and Riches were confident that the deal would bring further opportunities Autogrill’s way.

 

Williams concluded: “In the UK alone [Autogrill] has gone from a £250m business to a £650m business, and the deal takes the business to a new level. Autogrill will be the largest player in the world in this particular sector of retail and once they have delivered the synergies, they have a platform to grow in areas where they are underrepresented.”