©Wyder's
C&C Group has agreed to sell its US subsidiary Vermont Cider Company to Northeast Drinks Group for $20 million, in an effort to reduce debt.
As part of the deal, holding company Northeast Drinks Group will acquire a variety of cider brands and a production facility in Middlebury, Vermont.
Vermont Cider Company crafts a variety of ciders in the US including Woodchuck, Wyder’s and Gumption, as well as Magners Irish Cider and Blackthorn.
C&C Group bought the cider maker back in 2012 for $305 million. In 2018, Vermont Cider Company resumed full responsibility for the sales and marketing of its cider portfolio in the US.
C&C Group says it has taken a ‘series of proactive steps’ to mitigate the negative impacts of the pandemic, including a cost reduction programme that is expected to deliver annual savings of €18 million.
Net proceeds from the deal will be used to drive down debt and comes after the group divested its Tipperary Water Cooler business in Ireland to Waterlogic for a consideration of €7 million.
“Going forward, the objective is to continue to position C&C as the pre-eminent brand-led drinks distribution business in the core markets of the UK and Ireland,” the company said.
Under the terms of the agreement, Northeast Drinks Group will also take full control over Green Mountain Beverage, a division of Vermont Cider Company which manufactures hard cider, alcoholic RTDs and specialty non-alcoholic beverages.
Bridget Blacklock of Vermont Cider Company, said: “We have good momentum right now with Woodchuck and Wyder’s and I feel this new ownership will only strengthen this as we move forward.
“In addition, C&C appointing VCC as importer of their cider brands for the US allows us to maintain our representation of Magners and preserve the strength in our portfolio of iconic and diverse brands. As we look to the future, we will continue our passion and focus on cider while also adjusting to consumer beverage trends with brands that we feel best complement our current portfolio.”
Northeast Drinks Group says it is excited to return Vermont Cider Company to local ownership. The transaction is expected to be completed in the coming weeks, subject to customary conditions.
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