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France's Lagardere expands in N.American airport retail

Published 2015-08-11, 01:02 p/m
© Reuters. France's Lagardere expands in N.American airport retail
BARC
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LAGA
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PARIS, Aug 11 (Reuters) - French media group Lagardere
LAGA.PA has agreed to buy airport travel retail company
Paradies for $530 million in cash to create the second-largest
player in the North American market.
Lagardere is buying the business from Freeman Spogli & Co,
the Paradies family and other shareholders, it said in a
statement on Tuesday. The deal needs regulatory approval and the
agreement of several third parties.
Paradies operates in more than 76 airports through long-term
concessions, including Atlanta, Chicago and New York's John F.
Kennedy, and generated sales of $515 million in the year to June
28, Lagardere said.
The $7.7 billion airport travel retail market in North
America is set to grow thanks to the expansion of food services,
additional space created as terminals are modernised and
continued growth in traffic, Lagardere said.
The French company said Paradies would complement its
Lagardere Travel Retail unit, which it said has a stronger
presence in Canada. The combined business would have annual
sales of close to $800 million.
The purchase will be made using a bridge loan that would
then be refinanced according to market conditions, Lagardere
said. The deal is due to be completed in the fourth quarter of
2015.
JP Morgan JPM.N advised Lagardere in the deal. Barclays (LONDON:BARC)
{{o|BARC.L}} advised Paradies.

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