BAA announced that it has agreed to sell World Duty Free Europe Limited (“WDF”) to Autogrill S.p.A. for £546.6 million¹. With over €4.8bn of sales in 2007, Autogrill Group is active in 42 countries with around 70,000 employees. It operates over 5,200 shops in over 1,100 locations, serving 890 million customers a year.  Its main business channels are airports, motorways and railway stations but the Group has also significant operations in shopping centres, trade fairs, museums and city high streets.

BAA is selling WDF as part of its ongoing non-core asset disposal program.  WDF will enter into a 12-year concession agreement for the operation of duty free stores at BAA’s seven UK airports.

Proceeds of the sale will be used to repay debt in accordance with the terms of the ADI financing agreements.  The disposal is conditional upon ECMR clearance and is expected to complete towards the end of April.

¹ The equity purchase price of £546.6m is stated as at 31 December 2007. The final consideration will be adjusted upwards from this date until completion at a rate equivalent to LIBOR +2%.