Luxury / news
LVMH Offloads Zayed International Airport Duty-Free Operations to Falic Group
LVMH has agreed to sell its DFS duty-free business at Abu Dhabi’s Zayed International Airport to Miami-based Falic Group, parent of Duty Free Americas. The deal, expected to close in Q3, expands Falic’s Middle East presence.
The transaction covers DFS’s entire operation at Zayed International Airport, one of the largest airports in the United Arab Emirates. Financial terms were not disclosed.
Falic Group, which operates Duty Free Americas, said the acquisition will give it an immediate, large-scale presence in the Middle East, a region it described as one of travel retail’s strongest growth markets. The airport processed 32 million passengers last year and has capacity for 45 million annually.
The concessions set to transfer include a mix of luxury and contemporary fashion, watches, jewelry and sunglasses. Labels available in the terminal include Balenciaga, Boss, Bally, Bottega Veneta, Burberry, Bvlgari, Coach, Gucci, Hermès, Kenzo, Omega, Saint Laurent, Ferragamo and Zegna.
The sale is the latest in a series of divestments by LVMH, which earlier this year sold Marc Jacobs and the French fashion house Patou. The group’s first-half revenue came in at €38.644 billion, a 3% decline from the same period a year earlier, while net income remained stable.
The transaction is expected to close in the third quarter, according to the companies.