It was reported that Hotel Shilla Co.’s acquisition of DFASS, a U.S. mid-sized duty-free store chain, as part of its ambition to become one of the world’s top-three duty free chains. Hotel Shilla held a board of directors meeting on March 23 in which it decided to acquire a 44-percent stake in DFASS for US$105 million.
This deal includes an option which will allow Hotel Shilla to acquire an additional 36-percent stake in DFASS in five years.
A Hotel Shilla official said, “This deal would not make us become the largest shareholder of DFASS right now. However, given the option attached to this deal, we virtually acquired the controlling stake in the duty-free chain.”
The main reason for Hotel Shilla’s decision to acquire DFASS was its desire to gain a foothold in the U.S. duty-free business.
DFASS is not a big duty-free chain but has a stable base in the U.S. market. Founded in 1987, the company is engaged in retail of duty-free goods and operation of duty-free shops in major airports and border areas. Its sales amounted to $518 million last year.
