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TSR Early Wire Analysis: Autogrill SpA (AGL) / World Duty Free SpA (WDF)

|Includes:Autogrill S.p.a. ADR (ATGSY)

World's Leading Provider of Food & Beverage and Travel Retail Services / To Spinoff its Travel Retail & Duty-Free Business / M&A Play for Both Businesses Post-Spin / +30% Upside Potential / Enters Our TSR Model Portfolio

TSR View...

  • Parent - Autogrill SpA (AGL: ex-Spin): AGL will be one of the leading players in the F&B business with a well-diversified portfolio of activities by geography and channel, thanks to various acquisitions done by the company in past few years;
  • Spinoff - World Duty Free SpA (WDF): The Travel Retail & Duty Free business (with revenues of €2.2bn for FY12), will become one of the leading players in the world airport retailing market;
  • Management Exploring M&A Opportunities (Parent & Spinoff): Recently, there was speculation that AGL will look at the possibility of merging its F&B operations with that of the UK peer Select Service Partner (NYSE:SSP) after completion of its partial Spinoff of WDF.
  • Distribution Ratio: For every share held in AGL, shareholders will receive one share in WDF (Travel Retail & Duty Free business);
  • Spinoff Date: end of September, 2013.


On May 3, 2013, AGL's BOD approves the proportional partial demerger of the Travel Retail & Duty Free business into a separate entity named World Duty Free S.p.A. (WDF). The demerger is to be submitted for the approval in the shareholders' meeting on June 6, 2013.

Country: Sector: Food & BeveragesItaly / Exchange: Borsa Italiana / Current Price: €10.20

Mkt Cap: c.3.3bn USD / Bloomberg: AGL IM Equity

please make contact for more information (Jim Osman)

Stocks: ATGSY