Completion of sale of HDFS

Folli Follie enters as a strategic investor to Dufry AG by selling the remaining 49% stake of Hellenic Duty Free Shops

Folli Follie Group has signed an agreement to sell the remaining 49% equity stake of Hellenic Duty Free to Dufry AG. Folli Follie will receive a total consideration of EUR 328 million through a combination of cash and shares. Through this transaction, Folli Follie will enter as a strategic investor to Dufry AG.

On December 12, 2013, Folli Follie signed an agreement with Dufry AG to sell the remaining 49% of Hellenic Duty Free (HDF). This transaction completes the sale of HDF, the leading travel retailer in Greece, much earlier than originally scheduled, evidencing its strong performance and prospects as well as Dufry’s total commitment and strategic interest for this activity.

Apart from the financial aspects of the transaction and the direct involvement in Dufry’s global Duty Free Business, this agreement will reinforce the strategic partnership between Folli Follie and Dufry. It will enable Folli Follie to further exploit new markets where Dufry has already presence while simultaneously Dufry will benefit from the presence and the know how that Folli Follie has in markets where Dufry’s presence is limited. 

The transaction 

The consideration for the 49% equity stake will be EUR 328 million, which will be paid through a combination of cash and shares. The cash portion of the consideration will be EUR 175 million. Dufry will furthermore issue 1.231.233 number of shares from its authorized capital, being the equivalent of EUR 153 million, which will be given as a consideration to Folli Follie Group. 

Via these shares, Folli Follie Group will join the group of Dufry’s AG main shareholders led by Travel Retail Investments SCA. In addition, the Board of Directors of Dufry will propose Mr. George Koutsolioutsos for election as member of the Board at the 2014 Annual General Meeting.

2013: A year that can be characterized as transformational

George Koutsolioutsos, Folli Follie Group’s CEO, stated: “We are very excited as this is a transformational transaction for our Group and a vote of confidence not only for Hellenic Duty Free Business from Dufry but also for the entrepreneurial environment in Greece. Such actions support our country’s efforts in attracting new international investments. Through the two phases of this transaction, we not only manage to deleverage our balance sheet and introduce a global player as our important strategic partner in the Duty Free business but most importantly we achieve what was our strategy from the outset; to internationalize this activity by becoming one of the major shareholders of Dufry with whom we share the same views and vision on how we want to develop the Duty Free business globally.  
Furthermore, we anticipate additional synergies in our other activities that are expected to unfold in the forthcoming period.

About Hellenic Duty Free

Hellenic Duty Free is the leading travel retailer in Greece, with 111 shops and more than 18,000 square meters of retail space within an attractive, long duration concession portfolio. Overall, the business generates more than 80% of its turnover with international customers, among which Germans and British were the most important visitors. Until September this year, international tourists visiting the country increased by 10%.

Dufry Group – A leading global travel retailer

Dufry’s AG, history goes back in 1865 and now is a leading global travel retailer operating almost 1.400 duty-free and duty-paid shops in airports, cruise lines, seaports, railway stations and downtown tourist areas and operates in 45 countries in Europe, Africa, Eurasia, Central America & Caribbean, North America and South America. Dufry provides its customers with prestigious brands from more than 1500 suppliers. Dufry has been pursuing a strategy of profitable growth with focus on tourist destinations in emerging markets.
Dufry Ltd is publicly listed in Switzerland and in Brazil with a Market Capitalization of CHF 4,489 million. Turnover and EBITDA in 2012 were reported at CHF 3,062 million and CHF 474 million respectively.
Dufry employs around 17,000 people. The Company is headquartered in Basel, Switzerland.

FF Group is a global leading force in the fashion world that operates in more than 28 countries. The FF Group designs, produces and markets on a global level its own brands: Folli Follie and awards winning British jeweller Links of London. The Group participated in the Greek travel retail sector through the companies Duty Free Shops S.A. and Duty Paid Shops S.A.– and maintains at the same time a leading presence in the retail and wholesale segment in Greece and the Balkans. Factory Outlet as well as “Attica” Department stores are the Group’s major own retail distribution channels in Greece, whereas brands such as Ermenegildo Zegna, Juicy Couture, Nike, Converse, Samsonite, Guess, Calvin Klein and G-Star, belong to the Group’s local brand portfolio.  With a dynamic three pillar structure and an impressive portfolio the FF Group “accompanies” a customer through all life phases: from early childhood to adulthood one can relate to the FF Group and its brand portfolio.  
FF Group creates fashion globally and has established a strong presence with more than 800 points of sale worldwide, whereas it employs more than 4.600 people worldwide.