Sale of Limoncetta di Sorrento in Italy and sale of the Federated Pharmaceutical division in Jamaica

Sale of Limoncetta di Sorrento in Italy and

sale of the Federated Pharmaceutical division in Jamaica

 

 

Milan, December 22, 2014-Gruppo Campari announced today the signing of two agreements for the sale of non-core businesses.

 

Sale of Limoncetta di Sorrento in Italy.

Gruppo Campari announced today the signing of an agreement for the sale of the Limoncetta di Sorrento business to the Italian company Lucano 1894 S.r.l., known as the owner of the Amaro Lucano brand. The business sold consists of the Limoncetta di Sorrento trademark, a lemon based liqueur brand, and 100% of the share capital of Alimenta S.r.l., owner of the plant for the production of the concentrate. The deal consideration is € 7 million on a cash free / debt free basis. The deal structure foresees various post-closing price adjustments relating to stock and other assets and liabilities. It should be noted that based on the agreement, Gruppo Campari will continue to manage the bottling activities of Limoncetta di Sorrento on behalf of Lucano 1894 S.r.l. at its Finale Emilia plant until December 2015. The closing of the deal is expected on 30 January 2015. The Limoncetta brand entered Gruppo Campari’s business in June 2014 within the acquisition of Gruppo Averna, the owner, in particular, of Amaro Averna and Braulio brands.

 

Sale of the Federated Pharmaceutical division in Jamaica.

Gruppo Campari announced today the signing of an agreement for the sale of the Federated Pharmaceutical division of J. Wray & Nephew Limited (a fully owned subsidiary of Davide Campari-Milano S.p.A.) in Jamaica to Kirk Distributors Limited. The deal consideration is USD 14.4 million (€ 11.8 million at the current exchange rate) on a cash free / debt free basis. The deal structure foresees various post-closing price adjustments relating to stock and other assets and liabilities. The closing of the deal is expected by March 31, 2015. The Federated Pharmaceutical division of J. Wray & Nephew Limited entered Gruppo Campari’s business in 2012 within the acquisition of Lascelles deMercado & Co. Limited, consisting of a strong portfolio of world-class premium and overproof rums led by Appleton Estate and some non-core local operations.

 

The expected combined perimeter effect from the sale of the above businesses is below 1% of Gruppo Campari’s sales on a full year basis.

 

These transactions underline the Gruppo Campari strategy of strengthening its focus on its core high-margin spirits business via streamlining of non-core businesses. It should be noted that on November 12, 2014 Gruppo Campari already announced that it will exit the consumer agency brand business within the merchandise business in Jamaica during the first quarter 2015.

 

Publishing date: 
22 Dec 2014
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Last updated Dec 22 2014