LS travel retail, a division of Lagardère Services, confirms that it has reached an agreement in principle with Philip Gerzon to acquire 100% of Charles F. Gerzon Holding, which operates fashion travel retail in Schiphol Airport, the 4th European hub
With the contemplated acquisition, LS travel retail would strengthen its expertise in fashion travel retail and consolidate its n°1 European position. The contemplated transaction is subject to works council consultation.
A very professional and highly respected family business established since 1971, Gerzon Holding operates 12 mono & multibrands stores on a total space of 2400 m² and achieved sales of € 54 million in 2012. Benefiting from a long-term relationship with Schiphol Airport, Gerzon Holding presents an attractive portfolio of successful luxury brands such as Boss, Longchamp, Burberry, Hermes, Ralph Lauren, Ermenegildo Zegna… and a wide range of other ‘’ready to wear’’, medium to high end fashion and accessories brands, including Victoria’s Secret.
By entering Schiphol Airport, the 4th European airport and a major entry hub for the Asian travelers into Europe, and after the acquisition of the Paris Airports fashion business (DFP) in 2011 and Rome Airports duty free operations in 2012, Lagardère Services would consolidate its position in the fast growing segment of travel retail duty free & luxury as well as its leading position in fashion travel retail in Europe.
With a multiple valuation below 8x EBITDA, this acquisition would match the growth strategy of Lagardère Services in travel retail and be positive to its margin. The closing of the transaction is expected early January 2014.
Dag Rasmussen, CEO of Lagardère Services declares: “I am very glad to welcome into our Group Gerzon’s team and management, whose undisputed competences are widely recognized. Such an expertise will participate in strengthening our business practices in the mid and premium fashion ranges as well as in the promotional programs. I’m very confident in our potential development, considering Schiphol Airport’s great ambitions, in terms not only of traffic and sales development, but also of high quality of service.’’
Philip Gerzon, CEO of Gerzon Holding declares: ‘’After careful market screening, I am confident that Lagardère Services will be a great long term partner to Schiphol Airport as well as to my team, with a strong cultural fit and several commercial synergies. Lagardère Services has a solid reputation in the fashion travel retail, both in Europe and Asia Pacific and will bring its expertise in the luxury segment and with affluent BRIC’s travelers. The quality of its operations as well as its decentralized organization will match the values of Gerzon Company and I am proud to leave my team in good hands.’’
Otto Ambagtsheer, Managing Director Business Area Consumer Products & Services at Amsterdam Airport Schiphol, declares: “Over the last 40 years, Gerzon has significantly contributed to the development of the fashion, leather goods and travel accessories activities at Schiphol. Successful worldwide brands such as Hermès, Hugo Boss, Polo Ralph Lauren, Victoria’s Secret and Burberry are amongst today’s assortment offered to our passengers. We enjoyed an intensive and excellent collaboration and welcome our new business partner Lagardère Services at Schiphol. We are fully confident that, thanks to their broad experience and innovative strength, the quality of the fashion retail activities at Schiphol will be guaranteed.”
About LS travel retail
Operating in more than 25 countries throughout Europe, North America, Asia and the Pacific, LS travel retail, a division of Lagardère Services, is a world leader in Travel Retail. It operates 2,700 stores across the world, including a presence at 140 airports and 700 stations. It runs the largest international network of duty free and luxury, travel essentials and foodservice stores.