Gruppo Campari announces the acquisition of Copack, a leading contract beverage packer in Australia
Campari acquires Copack, a leading contract beverage packer in Australia
- Signed agreement to acquire the business assets of Australian-based Copack Beverage A Limited Partnership (‘Copack’), a leading contract beverage packer, currently used by Gruppo Campari for the ready-to-drink sourcing
- With this deal Campari acquires its own in-house manufacturing facilities for the key Australian market
- This acquisition further strengthens the company’s international supply capabilities while supporting the company’s future growth in the Asia-Pacific region
- Purchase price of Copack is AUD 20 million (or approximately € 14.2 million at current exchange rate) on a cash free / debt free basis
Milan, June 28, 2013 - Gruppo Campari announces it has signed an agreement to acquire the business assets of Copack Beverage A Limited Partnership (‘Copack’), a leading contract beverage packer in Australia, specialising in can and glass packaging, currently used by Gruppo Campari for the ready-to-drink sourcing.
Copack was established in Melbourne in 2007. Since 2010 it has been the supplier for Campari’s Wild Turkey ready-to-drink’s in Australia. Copack’s innovation capabilities have supported the introduction of a number of successful brands in Australia, including American Honey ready-to-drink launched by Gruppo Campari in 2012. Moreover, Copack supports the production and supply of a number of third party reputable brands in the Australian market. With its established plant and customer base, today Copack is well-positioned to continue to expand volumes and profitability.
Following three years of operation in Australia, Gruppo Campari has achieved a scale making the in-sourcing of manufacturing facilities for the region viable. The acquisition of Copack was deemed by the Group as the preferred option compared to the cost of a possible greenfield initiative.
This acquisition further strengthens the company’s international supply chain capabilities, whilst adding flexibility to the local organisation, heightening quality control and further supporting innovation capabilities. Moreover, it provides the Group with an opportunity to support the company’s future growth in the Asia-Pacific region.
Gruppo Campari will pay AUD 20 million (or approximately € 14.2 million at the current exchange rate) on a cash free / debt free basis for land, buildings, production assets and working capital. It is expected that the acquisition will be completed in the third quarter of 2013. The expected payback period of the Copack acquisition is approximately 6 years.
In 2012 the Australian market accounted for 6.1% of Gruppo Campari’s net sales. Gruppo Campari established its own marketing and sales organisation in Australia in 2010 following the 2009 Wild Turkey purchase, the largest acquisition completed by the Group. Marketing and sale of the Group’s products in Australia were previously contracted to third party distributors. The Group’s key brands distributed today in Australia include Wild Turkey ready-to-drink and Wild Turkey bourbon. In 2011 Gruppo Campari introduced the fast growing brand American Honey, part of the Wild Turkey franchise and one of the most successful brands in Australia. In 2012 Gruppo Campari successfully innovated its local portfolio by launching American Honey ready-to-drink. The local portfolio includes other Group spirits brands, notably SKYY Vodka, Campari, Frangelico, Aperol as well as sparkling wine Riccadonna. Moreover, with regard to the Group’s business in the Asia-Pacific region, the recently-acquired Lascelles deMercado &co. Ltd. contributed to Gruppo Campari the Jamaican dark rum Coruba, a leading brand in New Zealand.
Gruppo Campari currently owns and operates 15 plants in nine countries: Italy (four facilities), Greece, Scotland, Ukraine, Jamaica (three facilities), Mexico, United States, Argentina, Brazil (two facilities). Moreover, it owns and operates four wineries: three in Italy (Sella&Mosca, Teruzzi&Puthod and Enrico Serafino) and one in France (Lamargue).