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Dufry buys World Duty Free, more consolidation predicted

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The international head of Fifth Generation, owner of Tito's Handmade Vodka, has said that more consolidation in the global Travel Retail sector is "inevitable" after Dufry agreed a stake purchase deal with World Duty Free (WDF) .

Speaking after Dufry anounced the purchase of a majority stake in rival World Duty Free (WDF), John McDonnell told just-drinks he expected further acquisitions in the channel. "This is a fragmented sector," he said. "Continued consolidation is inevitable."

Dufry announced yesterday it will take a 50.1% stake in WDF from Edizione, a company owned by the Benetton family of Italy. The deal values WDF at about EUR3.6bn (US$3.91bn), including debt. Dufry also said it will seek to acquire the remaining shares in a mandatory tender offer.

The companies will have combined sales of about CHF7.8bn (US$8bn) and control about 24% of the Travel Retail retail market.

Spokespeople for Diageo and Pernod Ricard declined to comment on the Dufry deal.

Fifth Generation is upping Tito's international footprint and last year launched the vodka brand in a number of markets including South Korea, Greece, Panama, Guatemala and Costa Rica.


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