LEI:
213800QGNIWTXFMENJ24
11 February 2024
THIS ANNOUNCEMENT CONTAINS
INSIDE INFORMATION
SSP GROUP
PLC
ACQUISITION OF AUSTRALIAN
AIRPORT FOOD & BEVERAGE OPERATOR
SSP ENHANCES ITS AIRPORT
F&B OPERATIONS IN AUSTRALIA, GROWING ITS PRESENCE IN A
STRATEGICALLY IMPORTANT AND FAST-GROWING
MARKET
SSP Group plc ("SSP" or "the Group"), a leading
operator of restaurants, bars, cafes and other food and beverage
outlets in travel locations across 36 countries, is pleased to
announce it has entered into an agreement to acquire 100% of the
shares of Airport Retail Enterprises Pty Ltd ("ARE") in
Australia.
Compelling and
aligned strategic rationale
Founded in 1971, ARE is a leading,
privately-owned airport F&B operator, with annualised sales in
the region of AUS$200m (c. £100m) from 62 outlets, principally
bars, casual dining restaurants and cafes, across seven Australian
airports: Sydney, Melbourne, Brisbane, Gold Coast, Canberra,
Townsville and Mount Isa. ARE has a diverse portfolio of local,
national, international and chef-inspired brands, the majority of
which are in-house brands. SSP's acquisition of ARE will provide an
opportunity to build a stronger operational platform and deliver
synergies across the combined business.
The acquisition of ARE is aligned to SSP's
strategy of accelerating growth in the Asia Pacific region and will
see the Group enhance its presence in Australia. From 2023 to 2030,
international passenger air traffic in Australia is expected to
grow by an average of 10% p.a., with domestic passenger numbers
expected to grow by an average of 3-4% p.a.1. The
transaction will see SSP add a number of high-quality assets and
brands to its portfolio and will further rebalance the Group's
weighting towards the high-growth Asia Pacific Air
channel.
SSP has been present in Australia since 2007
and now operates 40 units across seven airports and one train
station. ARE's portfolio is highly complementary to SSP's existing
operations, and as a result of the acquisition, SSP will gain entry
into four new airports (Canberra, Gold Coast, Townsville and Mount
Isa). Post completion, SSP will operate c. 100 units across 11 of
the largest 19 airports in Australia.
Delivering
attractive shareholder returns
The acquisition is expected to complete by the
end of June, subject to receipt of all necessary approvals
including regulatory clearance and client consents. Post
completion, the acquisition is expected to be immediately earnings
accretive, albeit the contribution in the current financial year
will be largely offset by initial integration costs.
The transaction represents an effective use of
SSP's strong balance sheet, being funded through existing cash and
credit facilities.
Commenting on
the announcement, Patrick Coveney, CEO of SSP Group,
said:
"We are very pleased to have signed
an agreement to acquire a high quality and highly complementary
business in Australia. The acquisition will increase our portfolio
of brands and concepts, give us entry into new prime air locations,
enhance our position as a leading airport F&B operator in the
country and create significant value for shareholders.
"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 centre of excellence. We look forward to
welcoming c. 1,500 colleagues from the ARE business to our
team."
Peter Butts,
Founder of ARE, added:
"Since 1971, Airport Retail Enterprises ("ARE") has been
focused on creating exceptional dining experiences
for our
customers and, in doing so, has grown to become a leading operator
of airport F&B outlets in Australia. This transaction is a
major milestone for ARE and we are delighted that it will be
joining the SSP Group, one of the leading F&B operators in
travel locations globally.
The
acquisition will allow the combined business to offer an even wider
range of high-quality F&B selections and maintain an unwavering
commitment to excellence in the airport environment. I would
like to take this opportunity to thank all of our team members who
have played such an integral role in growing ARE to the business it
is today."
Notes
1. Deloitte report November 2023 "The economic
and social importance of Australia's airports"
This announcement contains inside information
for the purposes of Article 7 of EU Regulation 596/2014 (which
forms part of domestic UK law pursuant to the European Union
(Withdrawal) Act 2018 and is being released on behalf
of SSP by Fiona Scattergood, Group General Counsel and Company
Secretary.
SSP was advised by Mills Oakley,
Gilbert + Tobin and Deloitte. ARE was advised by Greenstone
Partners, Corrs Chambers Westgarth, Alvarez & Marsal and
KPMG.
ENDS
CONTACTS
Investor and analyst
enquiries
Sarah John, Corporate Affairs
Director, SSP Group plc
Sarah Roff, Group Head of Investor
Relations, SSP Group plc
On 11 February 2024: +44 (0) 7736
089218 / +44 (0) 7980 636214
E-mail: sarah.john@ssp-intl.com
/ sarah.roff@ssp-intl.com
Media enquiries
Rob Greening / Nick Hayns
Powerscourt
+44 (0) 207 250 1446
E-mail:
ssp@powerscourt-group.com
NOTES
TO EDITORS
About
SSP
SSP is a leading operator of food and
beverage outlets in travel locations worldwide, with c.42,000
colleagues in over 600 locations across 36 countries. We
operate casual dining and quick service restaurants, cafes, lounges
and food-led convenience stores, principally in airports and train
stations, with a portfolio of around 550 international, national
and local brands. These include many of our own brands (such as
UrbanCrave, which brought the first "street eats" concept to
airports in the US, and Nippon Ramen, a noodle and dumpling concept
in the APAC region) as well as many franchise brands (such as
M&S, Starbucks and Burger King).
Our purpose is to be the best part of
the journey, and this is underpinned by our aim to bring leading
brands and innovative concepts to our clients and customers around
the world, with an emphasis on great value, taste, quality and
service - using digital technology to boost
efficiency.
www.foodtravelexperts.com