The acquisition will take place in two stages, with SSP acquiring a 33% stake for an estimated net consideration of £39.0 million in February 2017, and a further 16% acquired by the end of 2018 for a net consideration of £18.9 million.
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.
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.”
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.
Its brand portfolio includes a number of in-house concepts as well as third party brands such as KFC, Krispy Kreme, Pizza Hut, Coffee Bean and Tea Leaf.