Flemingo Group has been in the diplomatic duty free business for over 15 years and has launched its Diplomatic online service this year. The group with its headquarters in Dubai has 128 operations in 26 countries, to be expanded in the near future to 29 countries thanks to its newly won contracts in Morocco, Costa Rica, and last week’s victory in Salvador Brazil.
Baltona, Flemingo’s European operation and listed on the Warsaw stock exchange, with Flemingo holding around 80 %,operates 46 stores, including 11 food and beverage outlets in 9 airports in Poland, Ukraine, France and performs diplomatic supplies within Europe. A number of these outlets are part of airport master retail concessions which include duty free, duty paid, boutique and convenience shops as well as F & B outlets.
The transaction will be structured in such a way that 38% of the shareholding will be held by Flemingo and the balance 62% held by Baltona.
This acquisition positions Flemingo Group amongst the leading companies in the global Diplomatic supply sector, with Chacalli becoming Flemingo’s brand for the business in the European market. There are plans to further increase locations and diplomatic services by the group and growth is expected from this sector especially in the developing/emerging markets where the diplomatic community seeks increase in product offer and service.
The three Chacalli airport duty free contracts will fit well the existing retail offer of Baltona and will increase its foothold now to seven countries in Europe.
A very enthusiastic Atul Ahuja welcomed the Chacalli team, joining the global Flemingo network, and expressed his delight on this acquisition. “This is a natural fit with our existing business and takes us a step closer to our company vision of 2BBY 2020 [2 billion $ sales]” he said.
Marc Leemans, CEOof Chacalli commented:”Flemingo brings a global opportunity to Chacalli-De Decker, the Chacalli brand and their focus on the growth of diplomatic sales. Our experience could position the newly structured division as a world leader in this sector. The Chacalli team looks forward to being part of a larger global growing company”.
Eric Demaerel, CEO of Overseas, is satisfied to bring Chacalli into a new promising future in the Flemingo Group and adds: “This step will allow Overseas to focus the company as a global independent distributor to duty free retailers.”