Lagardère Travel Retail has completed the acquisition of North American airport foodservice operator Hojeij Branded Foods (HBF) for $330m on a cash-free/debt-free basis.
Announced on 15 August, the deal will strengthen Lagardère’s position as a premier airport foodservice operator and will generate commercial and financial synergies in the North American market.
As the transaction is complete, both the companies will now merge their foodservice operations to create a new dining division under the Paradies Lagardère brand.
According to the company, the integration will create a $1.1bn business in the North American travel retail and foodservice industry.
The division will be responsible for new restaurant experiences from brand partners and proprietary concepts such as full service, fast casual and quick serve in 42 airports. It is expected to generate more than $350m annually in foodservice sales in 2019.
Paradies Lagardère president and CEO Gregg Paradies, along with the new dining division lead Regynald G. Washington, will look after the merger of the two foodservice operations.
Established in 1996, the Atlanta-headquartered HBF currently operates more than 124 bars and restaurants in 38 airports across the US and Canada.
The company has 40 brand relationships and proprietary concepts across full service, fast casual and quick service segments such as illyCaffè, LongHorn Steakhouse, ChickFil-A, PF Chang’s, Pei Wei and Cat Cora.
Lagardère will also enter a new phase by reinforcing its presence in North America by adding new retail spaces in airports, as well as seizing growth opportunities across all market segments in the US and Canada.