Food and drink travel operator SSP Group has completed the acquisition of 49% stake in Indian-based travel food and retail firm Travel Food Services (TFS) for a total consideration of £57.9m ($74.96m).
The deal is part of an agreement announced in October 2016 to establish a joint venture (JV) with K Hospitality Corp.
Carried out in two stages, the stake was acquired from the Kapur Family Trust, SNVK Properties and KAPCO Caterers, a part of the K Hospitality Group.
SSP completed the acquisition of initial 33% stake in March 2017 for an estimated net consideration of £39m, and a further 16% stake on 23 April this year for a net consideration of around £18.9m.
The transaction marked the group’s entry into the Indian market and is part of its plans to expand into new markets.
Commenting during the announcement of the deal, SSP CEO Kate Swann said: “This partnership is in line with the strategy we set out at our IPO. We have been looking for the right entry point into this exciting growth market and are delighted to have found an excellent partner in TFS.
“TFS brings a well-established business with a strong portfolio of brands. The combination of SSP’s international expertise in the travel sector and TFS’ strong local presence will provide an excellent platform for future growth in the Indian market.”
TFS currently operates around 170 food and beverage outlets in travel locations across India including in domestic and international terminals of six major airports and in railway stations. It also operates a number of airport lounges.
The brand portfolio of TFS includes various in-house concepts and other international chains such as KFC, Krispy Kreme, Pizza Hut and Coffee Bean and Tea Leaf. The company also operates food and beverage outlets at Muscat Airport in Oman.