Swiss duty-free retailer Dufry has announced it has fully acquired its American retailer Hudson, with a purchasing agreement that will see Dufry acquire all the equity interests in Hudson it does not already own for US$7.70 per share or a total purchase price of approximately US$311 million.
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As a result of the move, Duffy will increase its equity ownership position in Hudson from 57.4% at present to 100%. Hudson will also delist as a public company from the New York Stock Exchange.
The global retailer said that the delisting of Hudson is part of its current reorganization plan, which involves further simplifying its corporate structure and aligning its operations to a new business environment.
Dufry added that the purchase further supports already announced cost saving measures, and will improve cash flows going forward. As a whole, the global retailer expects to realise annual cost savings of at least US$21.9 million.
“The delisting of Hudson is an important part of our reorganization. It is expected to allow Dufry to realize considerable cost savings, both through synergies generated by simplifying our organizational structure and operating processes as well as by eliminating the costs and complexities of the separate listing,” said Julian Diaz, CEO of Dufry CEO.
The stronger integration will further accelerate the decision-making process by adding more flexibility and efficiency to our business.
Diaz went on to say that the delisting of Hudson emphasised the strategic importance of the North American business for the overall Dufry Group and more specifically, the integration of the group’s duty-free and duty-paid businesses globally.
“We will continue with the successful execution of our strategy for the North American travel retail market, which focusses on operating duty-free and duty-paid convenience shops, as well as the further penetration of the food & beverage market,” continued Diaz.
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“The closer alignment with headquarters and with other global operations will support the North American business during the recovery period, and the fast implementation of the full reorganization will help Dufry to focus the business on the re-opening and growth acceleration,” added Diaz.