Hotel Shilla acquires 44% stake in U.S. duty-free company 3Sixty for $121 mln

By Lim Chang-won Posted : October 25, 2019, 18:08 Updated : October 25, 2019, 18:08

[Courtesy of Hotel Shilla]

SEOUL -- Hotel Shilla, the South Korean operator of luxury hotels and duty-free shops, agreed to acquire a 44 percent stake in 3Sixty, a U.S. duty-free company which operates in-flight duty-free shops, securing a bridgehead for making an inroad into the American market.

Hotel Shilla, which runs Shilla Duty Free ranked third in the world, said on Friday that its stake in 3Sixty is worth $121 million. The deal includes a call option which will allow Hotel Shilla to secure an additional 23 percent stake in five years.

Hotel Shilla, headed by Lee Boo-jin, the daughter of the ailing patriarch of South Korea's largest conglomerate Samsung Group, said the acquisition is aimed at strengthening the global competitiveness of its tax-free business and secure a bridgehead for entering the duty-free business in the Americas.

3Sixty, which is a duty-free goods wholesaler, operates in-flight duty-free shops at 21 airlines and 41 duty-free shops in 12 airports in North and Latin America as well as cruise terminals. Hotel Shilla once sought to acquire the company's stake but negotiations broke down in 2017.

South Korean duty-free operators have opened airport-style duty-free shops mainly in Asia. Lotte Duty Free won a recent bid to become a duty-free shop operator for cigarettes and liquor at Singapore's Changi Airport.
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