(Alliance News) - SSP Group PLC on Monday said that it has agreed to buy an Australian airport food and beverage provider, enhancing the company's presence in the Asia Pacific region.
SSP, a London-based travel food outlet operator, has entered into an agreement to acquire 100% of Airport Retail Enterprises Pty Ltd, a Brisbane-based food services company with annual sales of around AUD200 million, about GBP103 million. Financial details of the transaction were not provided by SSP.
Airport Retail Enterprises has 62 outlets across seven Australian airports, and SSP said that acquiring its "highly complementary portfolio" would boost the company's growth in Australia and the wider Asia Pacific region.
Following the acquisition's expected completion in June, SSP will operate around 100 outlets across 11 airports in Australia.
This represents a significant opportunity for SSP, as the company noted that international passenger air traffic in Australia is expected to grow by 10% per year between 2023 and 2030.
Commenting on the deal, Chief Executive Officer Patrick Coveney 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 food and beverage operator in the country and create significant value for shareholders."
Shares in SSP were up 2.0% at 228.60 pence in London on Monday morning.
By Hugh Cameron, Alliance News reporter
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