Autogrill has entered an agreement with BAA to acquire 100% of World Duty Free Europe Limited at an enterprise value of £543.5 million, or 14.5 times WDF’s Ebitda as posted in 2007. Integration of WDF will enable the Group to generate sustainable synergies for 2011 worth €40 million, which on an NPV basis brings the acquisition’s normalized multiple to 9.
Under this operation WDF entered a new 12-year concession agreement with BAA.
Together with the completion of the Aldeasa acquisition, the WDF operation is a key event in the transformation process whereby Autogrill, formerly a major motorway f&b operator active in a single country, is becoming a global provider of services for travellers (“people on the move”). Autogrill thus strengthens its position in the rapidly growing airport retail market without altering its basic operational and strategic focus.
Aldeasa and WDF, together with Alpha Group (acquired in 2007), become the world’s leading airport retail operator, securing the biggest European platform and room for further development in other growth markets.
Who was World Duty Free
World Duty Free is the biggest travel retail operator in the UK.
It operates in seven of the country’s most important airports, including Heathrow (63 million passengers), the world’s third busiest international hub. 58 stores with an overall area of around 15,000 square metres.
Over 13,000 articles sold, 62 million customers and around 1,900 employees.
Provides all the traditional types of duty free/duty paid goods, with top brands of international prestige.