SSP Acquires Airport Retail Enterprises to Expand Presence in Australia
London-listed food-and-beverage company, SSP, has announced its acquisition of Australian airport food-and-beverage operator, Airport Retail Enterprises (ARE). The deal, for an undisclosed amount, is set to be financed through SSP’s existing cash and credit facilities.
In a statement released on Monday, SSP revealed that while the transaction is expected to immediately boost earnings, integration costs will partially offset its contribution to fiscal 2024. However, with the purchase of ARE, SSP will gain access to a diverse portfolio of local, national, international, and chef-inspired brands, the majority of which are in-house. Additionally, the acquisition will grant SSP entry into four new airports in Australia, including Canberra and Gold Coast.
This strategic move by SSP not only expands its presence in Australia but also emphasizes its focus on the high-growth Asia Pacific air channel. The company aims to rebalance its weighting towards this region. The deal is projected to be finalized by the end of June.
SSP’s Chief Executive, Patrick Coveney, sees great potential in the Asia Pacific market, stating that “The Asia Pacific region offers a significant opportunity to build returns and drive growth for the group. Our enlarged business in Australia will have the opportunity to become a regional center of excellence.”
SSP’s decision to acquire ARE reflects its commitment to expanding its global reach and strengthening its position in the food-and-beverage industry. The company’s existing cash and credit facilities provide the necessary means to successfully execute this acquisition.
Contact:
– Anthony O. Goriainoff
– Email: [email protected]
Analyst comment
Positive news. The acquisition of Airport Retail Enterprises (ARE) by SSP will immediately boost earnings and grant access to a diverse portfolio of brands. Integration costs may partially offset earnings in fiscal 2024. This move emphasizes SSP’s focus on the Asia Pacific air channel and expands its presence in Australia. Market response is expected to be positive, with SSP aiming to become a regional center of excellence in the Asia Pacific market. The deal is projected to be finalized by the end of June.
