Food and beverage (F&B) operator, SSP is acquiring 100% of the shares of Airport Retail Enterprise (ARE) in Australia, amid plans to grow its presence in a strategically important and fast-growing market. The acquisition is expected to complete by the end of June, subject to approvals. The deal, which will see around 1,500 ARE employees joining the SSP team and is being funded through SSP’s existing cash and credit facilities.
A privately-owned airport F&B operator, with 62 outlets across seven Australian airports, including: Sydney, Melbourne, Brisbane, Gold Coast, Canberra, Townsville and Mount Isa, ARE has a portfolio of local, national, international and chef-inspired brands. SSP’s acquisition of ARE will provide an opportunity to build a stronger operational platform and deliver synergies across the combined business.
In line with SSP’s strategy of accelerating growth in the Asia Pacific region, the acquisition of ARE will see the group enhance its presence in Australia. From 2023 to 2030, international passenger traffic in Australia is expected to grow by an average of 10% p.a..
Commenting on the deal, Peter Butts, Founder of ARE said: “Since 1971, 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.”
SSP’s CEO, Patrick Coveney, added: “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.”
He also noted: “The Asia Pacific region offers a significant opportunity to build returns and drive growth for the group. Our enlarged busienss in Austrlia will have the opportunity to become a regional centre of excellence.”
