Avolta Snaps Up DFS Duty-Free Business in Japan's Okinawa

Avolta has agreed to acquire DFS's duty-free operations in Okinawa, Japan, marking its first entry into the Japanese travel retail market. The deal includes airport and downtown retail locations at Naha Airport. Funded primarily through cash reserves, the acquisition is expected to be immediately accretive to Avolta's EBITDA margin, EPS, and equity free cash flow, while strengthening its position in the Asia-Pacific region.

By Joshua Kirby

Duty-free giant Avolta said it is buying the business of rival DFS in Okinawa, Japan, entering the East Asian country for the first time.

The deal covers DFS's operations at Okinawa's Naha Airport and a city shopping mall, the Swiss group said Tuesday. Last year, DFS's Okinawa business generated sales equivalent to roughly 10% of Avolta's business in Asia-Pacific, it said.

"The agreement will provide Avolta with a direct entry into the Japanese travel retail market in a location known for its strong and resilient tourism profile," the company said in a statement, without setting out any financial details of the acquisition.

"This acquisition... will further strengthen our position in the wider APAC region and will add to our geographical diversification," Chief Executive Xavier Rossinyol said.

The signing will be funded mostly via balance-sheet cash, with a limited impact on leverage, and should from the outset boost the company's earnings and equity free cash flow, Avolta said.

For DFS, majority-owned by French luxury-goods behemoth LVMH, the divestment comes months after it reached a deal to sell its travel-retail business in the hubs of Hong Kong and Macau to China Tourism Group Duty Free for an undisclosed sum.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

June 23, 2026 01:32 ET (05:32 GMT)