Campari acquires Carolans, Frangelico and Irish Mist brands
- High-quality and profitable business with upside potential: Carolans, the world’s second best-selling Irish cream liqueur; Frangelico, a leading specialty premium liqueur and Irish Mist, a leading Irish whiskey based liqueur
- Strengthens critical mass in highly-profitable US market and increases Group’s exposure to key international markets
- Perfect fit with guiding principles of Gruppo Campari acquisition framework
- Enterprise value of € 128.2 million (purchase price of € 129.0 million, cash position of € 0.8 million) corresponding to 7.5 times the pro forma EBITDA 2009, accretive in year one
Milan, 16 September 2010 - Gruppo Campari announces it has signed an agreement to acquire Carolans, Frangelico and Irish Mist from William Grant & Sons, reinforcing Campari’s position as a fast growing company in the US and key international premium spirits markets.
The acquired business includes the Carolans, Frangelico, Irish Mist trademarks and finished goods.
The enterprise valueof the acquired business is € 128.2 million, corresponding to 7.5 times the pro forma EBIDTA 2009 (inclusive of the distribution margins of the Frangelico brand in the US). The transaction is expected to close on October 1, 2010 and the consideration will be fully self-financed.
Bob Kunze-Concewitz, Chief Executive Officer:‘With Carolans, Frangelico and Irish Mist we add a high-quality and profitable business with upside potential and further enhance the Group’s premium offering. In particular, we increase our critical mass in the highly-profitable US market and strengthen our exposure to a number of key international markets, including Australia, Russia, Canada, Spain and the UK. This acquisition represents a perfect fit in our acquisition framework, in business and financial terms. Moreover, it will benefit from low risk and easy integration, as we already account for 60% of the acquired portfolio volume and we are the global source for Frangelico’.
Overall the acquired business is expected to contribute ca. 1 million nine-liter cases and net sales of € 50 million on annual basis.
Carolans is a global brand, a leading Irish cream liqueur with a total volume above 600,000 nine-liter cases sold in more than 60 markets. TheUS is the brand’s largest market, accounting for ca. 60% of the brand’s sales. The brand enjoys a successful track record of continuous growth in its category in key markets: geographic expansion as well as new product development represent potential upside.
Frangelico is a premium Italian hazelnut liqueur, a highly-profitable specialty brand sold in more than 90 markets. TheUS is the brand’s largest market, accounting for ca. 50% of the brand’s sales.High-quality, distinctive packaging and strong on-premise presenceare key features of Frangelico.
Irish Mist, is a liqueur made from a blend of Irish whiskey, honey and natural aromatic spices, sold in more than 40 markets (US is the brand’s largest market). Irish Mist will allow Gruppo Campari to exploit the strong momentum of the Irish whiskey category and the potential upside given by thestrong trademark and new brand development opportunities.
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Analyst conference call
Please note that at 11,00 AM (CET) today,Thursday 16 September 2010, Campari’s management will hold a conference call to present the acquisition to analysts and investors.
To participate, please dial one of the following numbers:
· from Italy: 02 805 88 11
· from abroad: +44 203 147 47 96
The presentation slides can be downloaded before the conference call from the main investor relations page on Gruppo Campari’s website, at
A recording of the conference call will be available from Friday, 17 September until Thursday, 23 September 2010.
To listen to it, please call the following number:
- from Italy: 02 72495
- from abroad: +44 207 0980 726
(access code: 734#).
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Media conference call
Please note that at 12,00 PM (CET) today,Thursday 16 September 2010, Bob Kunze-Concewitz, CEO, will hold a conference call in English to present the acquisition to all media. To participate, please dial one of the following numbers:
- from Italy: 02 805 88 11
- from abroad: +44 203 147 4796