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Absolut leaves Swedish Vin & Spirit Group
FoodBev Media

FoodBev Media

1 April 2008

Absolut leaves Swedish Vin & Spirit Group

*Pernod Ricard has announced the signing of a contract with Sweden for the acquisition of 100% of the shares of the Vin & Sprit Group (“V&S”), the owner of Absolut vodka. *

The icon premium vodka Absolut is no 1 worldwide with around 11 million 9 litre cases sold in 2007 and a 9% volume growth. In the United States Absolut sells more than 5 million 9 litre cases and in the rest of the world close to 6 million cases were sold in 2007.

Pernod Ricard Chairman and CEO Patrick Ricard, commented: “The acquisition of V&S by Pernod Ricard is a fantastic opportunity and represents our third transformational acquisition since the Seagram and Allied Domecq transactions. Absolut is an exceptional brand. Its integration within our portfolio of premium brands combined with the strength of our worldwide distribution network paves the way for outstanding growth prospects. We become thus the co-leader of the global wine and spirits industry.” * Joining a big family*

Absolut will join Pernod Ricard’s brands portfolio which includes Chivas, Ballantine’s, The Glenlivet, Jameson, Martell, Beefeater, Ricard, Malibu, Kahlua, Havana Club, Mumm, Perrier-Joüet, Jacob’s Creek and Montana. In addition, V&S also brings other opportunities, notably Cruzan rum (around 600,000 cases sold in the US in 2007 and a growth profile of 27%) as well as Level, the no 4 brand in the super-premium vodka category in the US.

The price paid for V&S by Pernod Ricard will be €1,450 million plus $6,050 million (€5,280 million). Pernod Ricard will also assume net debt of €346 million as of 31 December 2007 resulting in a total enterprise value of €5,626 million.

V&S will pay the Swedish government a dividend of €85 million before closing of the transaction, and the purchase price of the shares will be increased by a pro-rated annual interest charge of 2.0% from 1st January 2008 until the effective closing date of the transaction. In exchange, Pernod Ricard will benefit from the full cash flow generated by V&S over this period.

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