Last checked at 4 May 2023 07:00
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4 May 2023
SSP GROUP PLC
SSP expands its presence in North America with acquisition of the Midfield concessions business
SSP Group plc ("SSP" or "the Group"), a leading operator of restaurants, bars, cafes and other food and beverage outlets in travel locations across 35 countries, is pleased to announce it is further expanding its presence across North America by adding 40 new units at seven airports, including four new locations, through the acquisition of the concessions business of Midfield Concession Enterprise Inc. ("MCE").
The acquisition is an important step in SSP's strategy to accelerate its growth in North America and will give SSP a presence in over 30 of the 80 largest airports in the USA, including for the first time at Detroit Metropolitan Wayne County, Denver International, Philadelphia International and Cleveland Hopkins International. The deal will also expand SSP's existing presence at Minneapolis St Paul International, San Francisco International and Newark Liberty International.
The acquisition is expected to complete in late Summer, subject to all necessary approvals, and will further the North American team's strategy of developing a diverse portfolio of outlets at large, medium, and small airports. In total, it is expected to contribute an additional c. $100m to revenues in our North America business, on an annualised basis.
Founded in 2002, MCE is an award-winning and minority-owned concessions company, operating a portfolio of brands consistent with SSP's focus in North America on bringing local restaurants to the airport, which reflect the culinary landscape of the region. In addition, the business we are acquiring includes a collection of boutique brands developed by MCE, which address a specific set of passenger needs, as well as featuring national and international brands with widespread recognition.
Commenting on the acquisition, Patrick Coveney, Group CEO of SSP Group plc, said, "We are delighted to be expanding our presence in North America with entry into four new airports and expansion in a further three through this acquisition. The Midfield business is a strong strategic fit for SSP and is highly complementary to our existing business given the makeup of the brand portfolio and its focus on enhancing the passenger experience. We look forward to welcoming the team and their clients to SSP."
CEO of SSP America, Michael Svagdis commented, "SSP America is well positioned to pursue ongoing strategic growth, given our investment in developing a talented team of food travel experts who are passionate about bringing a 'taste of place' to airports. This acquisition is the latest step in our efforts to expand our presence at a diverse mix of airports across North America. We are truly looking forward to working with the Midfield team during this transition."
CEO of MCE, Andrea Hachem concluded, "Since our founding at Detroit Metropolitan Wayne County International Airport in 2002, we have remained focused on steady growth, a 'wow' customer service programme, and a commitment to operational excellence. Our success would not have been possible without the dedication of our employees who shared our belief that if we welcomed passengers into our restaurants like we were welcoming them into our home, we would succeed. The SSP America team has been a great partner throughout this process, and we're pleased the two companies understand how important it is to bring a regional flavour to the airport in order to achieve a world-class passenger experience."
CONTACTS
Investor and analyst enquiries
Sarah John, Corporate Affairs Director, SSP Group plc
Sarah Roff, Group Head of Investor Relations, SSP Group plc
On 4 May 2023: +44 (0) 7736 089218
Thereafter: +44 (0) 203 714 5251
E-mail: sarah.john@ssp-intl.com / sarah.roff@ssp-intl.com
Media enquiries
Rob Greening / Nick Hayns / Elizabeth Kittle
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 concessions in travel locations, operating restaurants, bars, cafés, food courts, lounges and convenience stores in airports, train stations, motorway service stations and other leisure locations. We are present in 35 countries around the world and have a portfolio of more than 550 international, national and local brands.