The acquired business includes the Wild Turkey brands, American Honey liqueur, distillery facilities in Kentucky, US, and aged liquid and finished product inventory.
The total purchase price for the acquisition is $575m, corresponding to 9.7 times the historic CAAP (Contribution after Advertising and Promotion expenses) and 12 times the expected Ebitda in the first 12 months following the deal’s closing.
The transaction, subject to antitrust approvals, is expected to close prior to 30 June 2009, and the consideration will be paid for in cash.
Bob Kunze-Concewitz, CEO, said: “With Wild Turkey, Campari adds a brand of strategic relevance to its portfolio and further enhances its premium offering. This acquisition is another key step in the building of a leading player in the global spirits industry. It’s a unique opportunity to enter the attractive bourbon whiskey category and exploit its growth potential through a global and leading brand.
“The transaction demonstrates our commitment, in line with our strategy, of continuing growth in the profitable US spirits market. In addition, Campari expands its presence in key international markets such as Australia, where the acquisition provides the foundation for establishing its own distribution platform, and Japan.”
Source: Campari Group
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