17th October 2016
Transport hub foodservice specialist SSP Group has agreed a joint venture, whereby SSP will take a 49% stake in Travel Food Services (TFS), a leading operator of food and beverage concessions in travel locations in India. SSP is paying £58 million to 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 range of food and beverage outlets across India. TFS operates food and beverage outlets in travel locations, with 170 units in India including major airports and railway stations. It also runs a number of airport lounges. In addition also has food and beverage outlets at Muscat Airport in Oman. Its brand portfolio includes a number of in-house concepts and third party brands such as KFC, Krispy Kreme, Pizza Hut and Coffee Bean and Tea Leaf. The acquisition will take place in two stages. The first stage is to acquire a 33% stake for £39m, to be completed by the end of February 2017. The second stage, to acquire a further 16%, is expected by the end of 2018, for c£18.9 million, contingent upon the performance. TFS’s revenue was £41.7m with Ebitda of £8.3m for the year ended 31 March 2016.