Campari announces the acquisition of Glen Grant
World's # 2 best selling single malt whisky and brand leader in the Italian whisky market
Deal valued € 130 million for the Glen Grant, Old Smuggler and Braemar brands
The Group enters the Scotch whisky category
Milan , 22 December 2005 - The Campari Group announces that it has signed an agreement to acquire Glen Grant, Old Smuggler and Braemar Scotch whiskies from Pernod Ricard, as part of a series of disposals undertaken by the French group with the EU Commission in conjunction with its recent acquisition of Allied Domecq. In addition, as part of the deal, Campari will acquire the distillery where Glen Grant is produced in Rothes , Scotland.
The consideration will be € 130 million , including € 115 million for Glen Grant (or 9.2 times the brand direct contribution in 2004) and € 15 million for Old Smuggler and Braemar (or 2.5 times the brand direct contribution in 2004). The closing will take place once the deal is authorised by the EU Commission and the consideration will be paid for in cash.
Enzo Visone, CEO of the Campari Group commented: “We are proud to have concluded another important deal that not only enables us to strengthen our position in the spirits segment further, but also to mark our entrance into the key Scotch whisky segment, one of the most important spirits categories in the world, a segment with great potential internationally as well as in the domestic market”.
Created in 1840, Glen Grant , with a total sales volume of roughly 350,000 9-litre cases , is currently the second single malt whisky brand in the world and the leading whisky brand in Italy. A successful brand for over 15 years, Glen Grant single malt whisky has a strong presence in Italy, Germany, France as well as in other important international markets.
Old Smuggler and Braemar are two brands of blended Scotch whisky present in a number of markets. In particular, Old Smuggler holds a significant position in the United States, Argentina and in the Eastern European markets, while Braemar is mostly present in the Eastern European markets and Thailand. Based on data and representations received from the seller, sales in 2004 for the three brands totalled some € 40 million (pre IAS / IFRS).