REG - SSP Group PLC - Acquisition of Australian Airport F&B Operator

SSPAnnouncement

12/02/2024 07:00

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RNS Number : 7319C  SSP Group PLC  11 February 2024

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 (mailto: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 (http://www.foodtravelexperts.com)

 

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