ARI Group to Buy an Additional 50% Stake in its Airport Retail Business in Cyprus
ARI Group has conditionally agreed to buy the 50% shareholding in its airport retail business in Cyprus, owned by its Cypriot partner, Ermes Department Stores plc.
The business, called CTC-ARI, holds the concession to operate shops at the two largest airports in Cyprus, Larnaca and Paphos, under a long-term contract that runs until 2031.
CTC-ARI generated sales of €88 million last year. The business operates close to 5,000 sq. metres of retail space, and employs 375 people directly, across both airports.
ARI has conditionally agreed to pay close to €54 million for the additional shareholding, which will be funded from ARI’s own accumulated profits.
“This is a very important transaction for ARI and daa, and importantly, will immediately generate additional income for the group, ” said daa CEO, Kevin Toland.
“ARI has been a key driver of profitability for daa Group over many years, a factor which has enabled us invest significantly in our Irish airports for the benefit of the economy, airline customers and passengers.
“We are taking this opportunity to increase our shareholding significantly in Cyprus because we believe strongly in its potential for growth and additional profitability. The investment will also protect and strengthen the overall value of daa’s overseas assets, which remain vital to the success of the overall group,” he added.
CTC-ARI generated turnover of €88 million in the year to December 31, 2013. The business operates close to 5,000 sq. metres of retail space, and employs 375 people directly, across both airports.
“We are extremely pleased to have the opportunity to add substantially to our shareholding in this valued concession in Cyprus, which will contribute immediately to ARI’s profits,” said Jack MacGowan, CEO, ARI.
“This represents a significant investment for ARI in a high priority market where we can continue to enhance margins and operating efficiencies. The investment demonstrates our commitment to growth in ARI’s broad Middle East region where we are a leading player and where we operate many successful local equity and business partnerships.”