In a move set to significantly expand its footprint in Australia, SSP Group has announced its agreement to fully acquire Airport Retail Enterprises Pty Ltd (ARE), a prominent Queensland-based food and beverage operator, for an undisclosed sum.
Established in 1971, ARE boasts a strong presence with over 60 in-house and franchised cafés, restaurants, and bars in seven Australian airports. Some of its well-known outlets include Quikshots, Merlo Caffe, and Toby’s Estate. ARE currently generates an impressive annual sales figure of approximately AU$200 million ($130 million).
SSP Group, a UK-based travel concession operator, has been operating in Australia since 2007, with 40 units across seven airports and Sydney’s Central Railway Station. This acquisition will not only expand SSP Group’s presence in Australia but also mark its entry into four new Australian airports – Canberra, Gold Coast, Townsville, and Mount Isa. Upon completion, SSP Group will have a presence in 11 of the largest 19 airports in Australia. The deal is expected to be finalized by the end of June 2024.
SSP Group’s CEO, Patrick Coveney, expressed excitement about the acquisition, noting that it aligns with the company’s strategy of accelerating growth in the Asia Pacific region. He highlighted the opportunity to grow its store count in Australia, enter new prime air locations, and enhance its position as a leading airport F&B operator in the country. Coveney emphasized that the enlarged business in Australia could become a regional center of excellence for the company.
The acquisition comes at a time of significant growth for SSP Group, which currently operates 2,900 food and beverage outlets across 37 markets globally. The company reported annual sales of £3 billion ($3.8 billion) in the 12 months ended 30 September 2023, marking a 38% increase from the previous year. In the first quarter of the current financial year, SSP Group’s revenues grew by 17.7% to £788 million ($999 million).
With the Australian market presenting a strategically important and fast-growing opportunity for SSP Group, the acquisition of ARE is poised to create significant value for shareholders while further solidifying SSP Group’s position as a leading player in the global travel retail market.
(Source: Airports International | Verdict Food Service | The Mirror)
