Campari to acquire Grand Marnier in friendly take over
by Agency Staff,
2016-03-15 17:29:29.0
MILAN — Italy’s Campari, the world’s sixth largest spirits company, is to launch a friendly takeover bid for Grand Marnier valuing the French liqueur maker at €684m as it bets on growth in North America.
Campari, best known for the eponymous red aperitif and the orange Aperol bitter, has grown through a slew of acquisitions since 1995. It hopes the French brand will help it further cash in on a classic cocktail renaissance among young Americans.
"(Grand Marnier) perfectly fits Campari’s acquisition strategy," the Italian company said in a statement on Tuesday.
The French brand will join Campari’s portfolio of five higher-margin brands, such as Wild Turkey bourbon and Skyy vodka, whose sales rose 10% in the second half of 2015.
Grand Marnier’s sales of finished goods fell 2% at constant currencies to €130m last year. But Campari CEO Robert Kunze-Concewitz said the Milanese company had experience in relaunching high potential brands.
"I see the brand delivering some nice growth for us," Mr Kunze-Concewitz told analysts.
Founded in 1827 by Jean-Baptiste Lapostolle, Grand Marnier reaps about 60% of its sales from the US, which will become Campari’s biggest market after the acquisition ahead of Italy now.
Campari Chief Financial Officer Paolo Marchesini forecast the purchase would drive a double-digit rise in its net income.
However, the impact on the current year will be more limited as the company is due to be consolidated only from the second half.
Campari will offer to buy shares in Grand Marnier in cash at €8,050 each, a 60% premium to the stock value, having already agreed to buy a 17.2% stake in the company from the controlling family shareholders.
Bryan Garnier analyst Virginie Roumage said the deal implied a "reasonable" multiple of 13.7 times earnings before interest, tax, depreciation and amortisation.
Campari plans to delist shares in Grand Marnier from the French stock exchange.
The Italian company will also be appointed global and exclusive distributor of Grand Marnier spirits portfolio.
Campari rose 0.6% in afternoon trade, outperforming a 1.3% fall in Italian blue-chip index. Shares in Grand Marnier were suspended.
Reuters
Picture: THINKSTOCK
MILAN — Italy’s Campari, the world’s sixth largest spirits company, is to launch a friendly takeover bid for Grand Marnier valuing the French liqueur maker at €684m as it bets on growth in North America.
Campari, best known for the eponymous red aperitif and the orange Aperol bitter, has grown through a slew of acquisitions since 1995. It hopes the French brand will help it further cash in on a classic cocktail renaissance among young Americans.
"(Grand Marnier) perfectly fits Campari’s acquisition strategy," the Italian company said in a statement on Tuesday.
The French brand will join Campari’s portfolio of five higher-margin brands, such as Wild Turkey bourbon and Skyy vodka, whose sales rose 10% in the second half of 2015.
Grand Marnier’s sales of finished goods fell 2% at constant currencies to €130m last year. But Campari CEO Robert Kunze-Concewitz said the Milanese company had experience in relaunching high potential brands.
"I see the brand delivering some nice growth for us," Mr Kunze-Concewitz told analysts.
Founded in 1827 by Jean-Baptiste Lapostolle, Grand Marnier reaps about 60% of its sales from the US, which will become Campari’s biggest market after the acquisition ahead of Italy now.
Campari Chief Financial Officer Paolo Marchesini forecast the purchase would drive a double-digit rise in its net income.
However, the impact on the current year will be more limited as the company is due to be consolidated only from the second half.
Campari will offer to buy shares in Grand Marnier in cash at €8,050 each, a 60% premium to the stock value, having already agreed to buy a 17.2% stake in the company from the controlling family shareholders.
Bryan Garnier analyst Virginie Roumage said the deal implied a "reasonable" multiple of 13.7 times earnings before interest, tax, depreciation and amortisation.
Campari plans to delist shares in Grand Marnier from the French stock exchange.
The Italian company will also be appointed global and exclusive distributor of Grand Marnier spirits portfolio.
Campari rose 0.6% in afternoon trade, outperforming a 1.3% fall in Italian blue-chip index. Shares in Grand Marnier were suspended.
Reuters
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