Diageo to acquire Mey Içki

The transaction is expected to complete in the second half of calendar 2011, subject to regulatory clearances.

Mey Içki is the leading spirits producer and distributor in Turkey. In the financial year ended 31 December 2010, the company had net sales of TL766m (£300m) and EBIT of TL305m (£120m). It’s the clear market leader in Raki, the biggest spirits category in Turkey, and has a leading position in vodka. The company also has an extensive nationwide sales and distribution network.

The acquisition is:

• Eps accretive Year 1 by approximately 1%.
• Economic profit positive Year 5 using a 13% weighted average cost of capital.
• A high growth, high margin business.

Mey Içki will be consolidated as part of Diageo Europe and will continue to operate under the current management team.

The acquisition will be funded through existing cash resources and debt.

Source: Diageo

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