Dufry moves from airports to motorways in Autogrill tie-up

ZURICH — Airport duty-free shop firm Dufry announced on Monday it will take over Autogrill, which runs restaurants at motorway service areas, in a bid to better position itself to win concessions by offering a range of services to consumers.

The merger will create a giant serving 2.3 billion clients in more than 75 countries in around 5,500 outlets at around 1,200 locations generating 13.6 billion Swiss francs ($13.8 billion, 13.6 billion euros) in sales. 

Swiss-based Dufry is the leading global travel retailer with over 2,300 duty-free and duty-paid shops in airports, cruise lines, seaports, railway stations and downtown tourist areas in 66 countries across six continents.

Milan-based Autogrill is also the leading firm in the food and beverage segment, operating about 3,300 points of sale in airports and railway stations as well as motorways in 30 countries.

"The union between Autogrill and Dufry will allow the creation of the world champion in the sector, with a leadership position in different geographies and on different services," said Alessandro Benetton, chairman of the Benetton family's investment firm Edizione which owns a majority stake in Autogrill.

Dufry said integration of its travel retail and convenience business with Autogrill's complimentary food and beverage segments would allow the merged firm to provide a better, holistic experience to consumers.

The tie-up also puts Duffy in a position to offer a full range of services to landlords and bid to act as master concessionaire or terminal manager.

"We are transforming our industry and redefining its boundaries," Dufry Chief Executive Xavier Rossinyol was quoted as saying in a statement.

While complementary, the merger also opens the possibility for cost savings as they both operate in some of the same locations.

The merger will be carried out by Edizione surrendering its majority stake in Autogrill for Dufry shares and becoming the largest shareholder in Dufry.

Under Italian takeover laws, Dufry is obliged to offer other shareholders the same terms to acquire its shares or the cash equivalent of 6.33 euros per Autogrill share.

That price was less than Friday's closing price of 6.85 euros per Autogrill share, and stock in the company plunged more than eight per cent to 6.30 euros at the opening of trading on Monday.

Dufry's shares jumped 4.7 per cent as trading got underway.

Dufry said it aims to remove Autogrill's shares from the Milan stock exchange.