SSP will own a 49% stake in Travel Food Services Private Limited in India.
SSP will acquire shares from the Kapur Family Trust, SNVK Properties Private Limited and KAPCO Caterers, part of the K Hospitality Group and subscribe for new shares in TFS. K Hospitality operates a broad range of food and beverage outlets across India. TFS operates food and beverage outlets in travel locations, with approximately 170 units in India.
SSP is acquiring 49% of TFS for an expected net consideration of £57.9 million. The acquisition will take place in two stages. The first stage is to acquire a 33% stake for an estimated net consideration of £39.0 million. This stage is expected to be fully completed by the end of February 2017. The second stage, to acquire a further 16%, is expected to take place by the end of 2018, for a net consideration of approximately £18.9 million, contingent upon the performance of the business.
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.”
K Hospitality Group’s chairman Sunil Kapur said, “We are delighted to be partnering with SSP. SSP’s international experience and proven track record, coupled with our knowledge and position in the region, means that we have a winning partnership to create a strong proposition for growth.”
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