Dufry has agreed to acquire 100 percent ownership of The Nuance Group, a retail company with a handful of locations in the United States and Canada, for CHF 1.55 billion (US $1.73 billion).
The deal, expected to close in the third quarter of this year, would give Dufry a 15 percent share of the world market in 63 countries spanning five continents, according to a company announcement. That will encompass 239 airports with 1,750 shops.
The Nuance Group has presence in 66 locations across 19 countries, including eight North American airports: Toronto Pearson International (YYZ), Calgary International (YYC), Chicago O’Hare International (ORD), Orlando International (MCO), Denver International (DEN), Fort Lauderdale-Hollywood International (FLL), George Bush Intercontinental (IAH) and McCarran International (LAS).
Most recently Nuance had announced it would be the exclusive retailer of SK-II at YYZ and that it would open four boutiques at the airport: Aveda, Jo Malone, MAC cosmetics and Victoria’s Secret. In March, Nuance and DFASS announced a three-year extension of their partnership at MCO through 2022.
Dufry plans to integrate Nuance into its existing organization and expect positive cost synergies starting in 2015. The company expects increased purchasing power and an improvement in gross margin after bringing Nuance into its supply chain and logistics program.
“The acquisition of The Nuance Group by Dufry is a transformational deal not only for Dufry but for the travel retail industry,” says Julian Diaz, Dufry’s CEO. “This acquisition is a continuation of the global diversification strategy which we have communicated and executed for many years and that is based on profitable growth through three main pillars: like-for-like growth, new concessions and acquisitions.”
