State-owned Aer Rianta International (ARI) is to acquire the remaining 50 per cent shareholding in CTC-ARI from its Cypriot partner Dermes Department stores for a cash consideration of €54 million.

The Irish company, a subsidiary of Dublin Airport Authority, said the investment demonstrated its commitment to growth in the Middle East region.

CTC-ARI is the parent company in the Cypriot business which operates retail stores at Larnaca and Paphos airports under a long-term exclusive concession arrangement to 2031.

CTC-ARI generated turnover of €88 million in the year to the end of December 2013.

The business operates close to 5,000 sq. metres of retail space, and employs 375 people directly, across both airports.

ARI said the acquisition will be earnings accretive for DAA Group from completion.

“We are extremely pleased to have the opportunity to add substantially to our shareholding in this valued concession in Cyprus, which will contribute immediately to ARI’s profits,” said ARI chief executive Jack MacGowan.

ARI, which was established in 1988 with the opening of Moscow Duty Free, designs, manages and operates duty free and duty paid airport retail outlets in Ireland and nine other countries across Europe, Asia and the Americas. The group’s operations generated managed turnover in excess of €850 million in 2013.

Ermes Department Stores is a subsidiary of the privately-owned, Cypriot retail and distribution company, the Shacolas Group.