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December 12, 2018

Lagardère buys airport foodservice operator HBF for $330m

Lagardère Travel Retail has completed the acquisition of North American airport foodservice operator Hojeij Branded Foods (HBF) for $330m from investment funds managed by Morgan Stanley Capital Partners (MSCP). 

Lagardère Travel Retail has completed the acquisition of North American airport foodservice operator Hojeij Branded Foods (HBF) for $330m from investment funds managed by Morgan Stanley Capital Partners (MSCP).

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The deal was announced in August, when Lagardère stated that the integration will create a $1.1bn business in the North American travel retail and foodservice industry.

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.

MSCP managing director Adam Shaw said: “We were attracted to HBF given the management team’s demonstrable track record of market share gains within the growing airport F&B industry.

“We were attracted to HBF given the management team’s demonstrable track record of market share gains within the growing airport F&B industry.”

“Over the course of our investment period, HBF, led by Regynald Washington, successfully assembled a top management team, entered numerous new airports and geographies and completed the acquisition of Vino Volo, creating a truly scaled airport operator.”

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.

In July 2015, MSCP acquired the foodservice company for a transaction value of $155m, and expanded the brands’ presence by increasing the number of airports and restaurant locations.

Under MSCP, HBF also acquired Vino Volo, an airport wine bar chain operating in the US and Canada, as part of MSCP’s strategy to build businesses by collaborating with their founder and owners.

Free Report
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The critical role of sustainability for Foodservice success in the 2020s

Consumers have radically re-thought their priorities in recent years and changed their habits for the good of the planet, starting to hold companies accountable for their ESG activities. These changes are set to be significant hallmarks of the Consumer Landscape in the 2020s. In order to appease consumers’ new concerns, meeting these new sustainability imperatives will be crucial for the recovery of the Foodservice industry. Consumers are expected to use ESG criteria much more actively in their selection of Foodservice brands to engage with. Download GlobalData’s free report to:
  • Understand the range of ESG challenges currently facing the Foodservice sector
  • Gain insight into consumers’ expectations via consumer survey deep dives
  • Learn from foodservice operators and brands who are already successfully embracing ESG strategies
Stay ahead of consumer concerns and rise to meet them. Download the report now.
by GlobalData
Enter your details here to receive your free Report.

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