ARI To Acquire Additional 50% Shareholding In Cyprus Airport Retail Business

ARI Group, the travel retail business owned by Dublin Airport Authority (DAA), has conditionally agreed to acquire a further 50% shareholding in CTC-ARI from its Cypriot partner, Ermes Department Stores plc, for a cash consideration of €54 million.

CTC-ARI is the parent company in the Cypriot business which operates retail stores at Larnaca and Paphos airports under a long-term exclusive concession arrangement to 2031.

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. The acquisition will be earnings accretive for DAA Group from completion.

“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 ARI Chief Executive, Jack MacGowan.

“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.”

ARI, a wholly-owned subsidiary of DAA, owns or operates airport retail businesses in Ireland and nine other countries ranging from North America, through the Middle East to Asia. The group’s operations generated managed turnover in excess of €850 million in 2013.

Ermes Department Stores is a subsidiary of the privately-owned, Cypriot retail and distribution company, the Shacolas Group. Completion of the transaction is subject to certain conditions and regulatory approvals.

Further information:

Paul O’Kane, 353 1 814 1897, 353 86 609 0221