SSP Group plc, a leading operator of food and beverage outlets in travel locations worldwide, has agreed to create a joint venture, whereby SSP will own a 49% stake in Travel Food Services Private Limited (TFS), a leading operator of food and beverage concessions in travel locations in India.
SSP will acquire shares from the Kapur Family Trust, SNVK Properties Private Limited and KAPCO Caterers, part of the K Hospitality Group.
TFS operates food and beverage outlets in travel locations, with approximately 170 units in India including at six major airports in both domestic and international terminals and in railway stations. It also runs a number of airport lounges.
In addition to these contracts, it operates food and beverage outlets at Muscat Airport in Oman. Its brand portfolio includes a number of strong in-house concepts as well as leading third party brands such as KFC, Krispy Kreme, Pizza Hut and Coffee Bean and Tea Leaf.
SSP is acquiring 49% of TFS for an expected net consideration of £57.9m. TFS’ revenue was £41.7m and EBITDA was £8.3m for the year ended 31 March 2016.
Kate Swann, CEO of SSP, 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.”
Sunil Kapur, Chairman of K Hospitality Group, 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.”