Advent recently announced the acquisition of a majority stake in the Hudson Group, a clear sign of its commitment and interest for an often overlooked sector, the travel retail industry.
After suffering from external negative events such as Iraq, SARS and 9/11, the shoppers appear to be back on the airport stores, and funds are setting an eye on this increased activity with high levels of profitability.
From the Hudson website:
Travel retailer Hudson Group has signed a definitive agreement with global private equity firm Advent International, based in Boston, making Advent the majority owner. The introduction of Advent will support a variety of exciting growth opportunities for Hudson.
Hudson Group operates over 550 newsstands, bookstores, cafes and specialty retail concessions in 69 airports and transportation terminals throughout the United States and Canada, including more than 400 Hudson News stores, the only national newsstand brand in the industry. Revenues are set to top $630M in 2007.
With Advent, Hudson will leverage its position as the premier travel retailer in North America, enabling future strategic acquisitions and the global expansion of the brand. The existing management team, led by president and founder Mario DiDomizio and executive vice president and COO Joseph DiDomizio, will continue to manage the business. The transaction is subject to certain approvals and customary closing conditions. Terms of the agreement were not disclosed.