HMSHost Corp. has entered into an agreement with Concession Management Services Inc. to acquire select CMS airport restaurants. The deal involves 16 dining locations at Los Angeles International (LAX) and Las Vegas’ McCarran International (LAS).
The deal is contingent on approval from LAX and LAS. A purchase price was not released.
The deal builds on a long-term partnership between HMSHost and CMS that began in 1995 when HMSHost partnered with CMS, a then-newly formed concessionaire founded by Clarence A. Daniels, Jr. HMSHost noted that partnership has continued over more than 20 years, and said Daniels, CMS’s chairman and CEO, will “transition into retirement from the business.”
“The acquisition of these dining locations will allow HMSHost to expand our presence and provide even more diverse offerings to our travelers at these two airports,” said HMSHost President and CEO Steve Johnson. “Clarence has been a strong partner of ours for many years, and we wish him a very rewarding retirement.”
CMS will continue as an ongoing firm in the airport concessions industry. The company said the sale “represents an exit strategy for its founder while creating a start-up strategy for the next generation of CMS leadership.”
“I have had an incredible career in the concessions industry and achieved all my goals,” Daniels said. “It’s time that I retire and let the next generation of CMS leadership develop and own CMS.”
CMS will now be led by Daniels’ son C. Anwar Daniels, current president and COO.
In addition to CMS restaurants, CMS is involved in two joint ventures at LAX – one with World Duty Free in retail and one with HMSHost in food and beverage. Those contracts will be acquired by Anwar Daniels and his partner Greg Plummer, currently vice president of development at CMS. Sonya Walker, Anwar’s sister, and her husband Willis Walker will be participants in the newly organized CMS.
“I am very happy for my father,” Anwar Daniels said. “He has worked for over 30 years in the concessions industry and has earned the opportunity to go out on top. I am very confident that he has prepared us to carry on the CMS legacy and achieve even greater success.”
The HMSHost-CMS transaction is expected to close later this summer after receiving the necessary approvals and consents.
