Higher Crust proprietor SSP Group has struck a deal to purchase an airport bar and restaurant agency in Australia to additional increase its international footprint.
SSP – which runs meals shops at transport websites together with airports and railway stations – has agreed to take over privately-owned Airport Retail Enterprises (ARE) for an undisclosed sum.
It is going to see SSP add ARE’s 1,500 employees and 62 websites throughout seven airports, largely bars, informal eating eating places and cafes.
The acquisition will improve our portfolio of manufacturers and ideas, give us entry into new prime air areas, improve our place as a number one airport meals and beverage operator within the nation, and create vital worth for shareholders
Patrick Coveney, SSP Group
The deal will give SSP entry to 4 new airports in Australia the place it doesn’t have already got a presence – Canberra, Gold Coast, Townsville and Mount Isa.
The acquisition is anticipated to finish by the top of June.
SSP has been working in Australia since 2007 and already runs 40 websites throughout seven airports and one railway station.
After the deal, it can run round 100 websites throughout 11 of the most important 19 airports in Australia.
Patrick Coveney, chief govt of SSP Group, mentioned: “The acquisition will improve our portfolio of manufacturers and ideas, give us entry into new prime air areas, improve our place as a number one airport meals and beverage operator within the nation, and create vital worth for shareholders.
“The Asia Pacific area provides a major alternative to construct returns and drive progress for the group.”
This transaction is a significant milestone for ARE and we’re delighted that it will likely be becoming a member of the SSP Group, one of many main meals and beverage operators in journey areas globally
Peter Butts, Airport Retail Enterprises
ARE founder Peter Butts mentioned: “This transaction is a significant milestone for ARE and we’re delighted that it will likely be becoming a member of the SSP Group, one of many main meals and beverage operators in journey areas globally.”
ARE was based in 1971 and has annual gross sales of round 200 million Australian {dollars} (£100 million).
SSP’s current buying and selling replace confirmed groupwide like-for-like gross sales rose 14.3% at fixed trade charges within the quarter to December 31.
Within the UK and Eire, it notched up a 17.1% soar in comparable retailer gross sales within the ultimate three months of final yr because it noticed much less of successful from industrial motion in contrast with a yr earlier, when prepare strikes prompted havoc within the run-up to Christmas in 2022.
However the group mentioned it expects to see an influence from strike motion proceed all through the primary three months of 2024 throughout the UK in addition to in Continental Europe.
