Hudson Group is adding food and beverage concessions to its repertoire with the acquisition of a North American food operator whose recognizable brands include Dunkin Donuts, Kitchen by Wolfgang Puck and Jamba Juice.
On Thursday evening, East Rutherford-based travel retailer Hudson Group said it signed an agreement to acquire a controlling stake in the assets of OHM Concession Group LLC, a privately-owned company – by the same family for more than two decades –operating at 13 airports nationally.
According to Hudson Group, a Dufry company, the deal more than doubles its existing quick service and café concepts to an approximate 110 units in the U.S. and Canada. It also introduces Hudson to new markets like Albany International Airport and Pensacola International Airport, and according to OHM’s chief executive, adds 900 associates to the Hudson team.
“In 2013, I was fortunate to partner with the Hudson team on the retail program at my home airport, St. Louis Lambert International,” said OHM President and Chief Executive Officer Milan Patel in a prepared statement. “The Hudson team represents the same principles my uncle and father, the founders of OHM, taught me: focus on quality, deliver excellence to our guests and provide our associates with a great place to work.”
Patel will stay on to manage the transaction as a partner, Hudson said.
In 2018, OHM generated $62 million in revenue, according to Hudson. At the end of that year, the company had grown to nearly 60 food and beverage locations at 13 locations from its 10 spots at two airports in 2013.
“This acquisition is a pivotal step in accelerating Hudson’s growth strategy within the $6 billion North American food and beverage airport concessions market,” Hudson CEO Roger Fordyce said in a prepared statement. “It expands our existing stake and adds new capabilities, including full-service, fast casual, sports restaurants and fine dining locations to our portfolio… “
Financial terms of the deal were not disclosed. Subject to customary closing conditions, the acquisition is expected to close in the fourth quarter of 2019 or first of 2020, Hudson said.