Avolta Acquires Free Duty to Expand APAC Presence

Avolta, a global leader in travel retail and F&B, has announced a deal to acquire Free Duty from NWS Holdings Limited. This acquisition aims to bolster Avolta's presence in the Asia Pacific (APAC) region, providing access to 150 million travelers and increasing regional sales by CHF 250 million.

The acquisition supports Avolta’s Destination 2027 strategy, targeting accelerated revenue growth in APAC. Free Duty’s 2024 revenue is projected at around CHF 250 million. The transaction considers increased passenger numbers and a tripling of duty-free allowances for mainland Chinese travelers.

The purchase will be entirely funded with cash from Avolta’s balance sheet, maintaining the company's leverage commitments. This will expand Avolta's APAC portfolio to over 340 stores in ten countries.

Xavier Rossinyol, CEO of Avolta, emphasized strategic growth and praised the partnership with NWS Holdings and Free Duty. Meanwhile, Freda Cheung, President and CEO of Avolta’s APAC region, highlighted the deal’s potential to enhance relationships with local partners and deliver superior traveler experiences. Gilbert Ho of NWS Holdings acknowledged the transaction's value optimization for shareholders.

The deal is subject to closing procedures, including securing customary conditions precedent.