Travel retailer Dufry is acquiring its rival Nuance for CHF1.55 billion (US$1.7 billion).
Nuance is the world’s sixth largest duty free and travel retail group by sales volume, operating more than 350 duty free and tax free stores, brand boutiques and concept stores across 66 store locations in 19 countries.
Dufry is the leading global travel retailer, operating around 1400 duty-free and duty-paid shops in airports, cruise lines, seaports, railway stations and downtown tourist areas.
The acquisition will confirm Dufry as the global leader in the airport retail industry reaching 15 per cent of worldwide market share with presence in five continents, 63 countries, 239 airports with close to 1750 shops.
It will also strengthen Dufry’s presence in Asia with Nuance’s leading presence in the region empowering the group’s positioning. Nuance’s concessions in mainland China, Hong Kong and Macau will be complementary to Dufry’s operations in mainland China, South Korea and Taiwan.
In Southeast Asia, the combined entity will have a presence in Cambodia, Indonesia, Sri Lanka and Nuance will add airport retail activities in India and Malaysia.
“This acquisition is a continuation of the global diversification strategy which we have communicated and executed for many years and that is based on profitable growth through three main pillars: like-for-like growth, new concessions and acquisitions,” said Julian Diaz, Dufry’s CEO.
Recently Nuance bought the 50 per cent stake in its JV, which runs 46 stores in Mainland China, Hong Kong, Macau, Singapore and Malaysia, with AS Watson for an undisclosed amount.
