Switzerland-based travel retail giant, Dufry, has recently made headlines with its announcement of the acquisition of the remaining shares of Hudson Ltd, an American peer, in a significant deal worth a whopping $311 million. This move will see Dufry take full control over Hudson, solidifying its dominance in the North American travel retail market. The acquisition, which involves the purchase of the remaining 42.6% of Hudson’s shares that Dufry does not already own, will see Hudson being delisted from the New York Stock Exchange, marking a new chapter in both companies’ partnership.
Hudson Ltd, recognized as a leading “travel experience leader,” operates more than 1,000 stores across airports, commuter hubs, iconic landmarks, and popular tourist destinations in North America. By acquiring Hudson, Dufry is strategically restructuring its operations to simplify its corporate framework and align with the changing dynamics of the business world. To fund this acquisition, Dufry has successfully secured a fully underwritten rights issue in collaboration with prominent financial institutions like UBS and Credit Suisse, signaling confidence in the deal’s potential success.
The decision to acquire Hudson amid the challenging backdrop of the global pandemic reflects Dufry’s commitment to staying resilient in the face of adversity within the duty-free retail sector. With travel restrictions and reduced tourist activities significantly impacting travel retail sales, companies in this sector are compelled to rethink their strategies and make bold moves to navigate the uncertain terrain. Although there have been slight improvements in the travel retail sales following the ease of restrictions, the industry is yet to fully recover to its pre-pandemic levels.
By acquiring Hudson, Dufry is not only bolstering its market presence but is also strategically positioning itself for future growth and profitability. This acquisition underscores Dufry’s determination to adapt to the changing consumer behaviors and travel patterns, ensuring that the company remains a formidable player in the travel retail market. With this strategic move, Dufry aims to leverage Hudson’s strong market position and diverse retail offerings as it charts a path towards sustainable growth and success.
For more information on the acquisition of Hudson Ltd by Dufry, you can visit the official websites of Dufry and Hudson Ltd.
