Gruppo Campari sells the Lemonsoda business for € 80.0 million to Royal Unibrew A/S

Gruppo Campari sells the Lemonsoda business for € 80.0 million
to Royal Unibrew A/S


Milan, October 4, 2017-Gruppo Campari announced today that it has reached an agreement to sell the Lemonsoda business to Danish based beverage company Royal Unibrew A/S.

The enterprise value is € 80.0 million on a cash free/debt free basis for 100% of the issued share capital of a wholly owned subsidiary of Davide Campari-Milano S.p.A.’s, and it is subject to the customary price adjustment mechanisms. The sold business includes the alcohol free fruit-flavoured carbonated variants Lemonsoda, Oransoda, Pelmosoda and Mojito Soda, grouped under the Freedea brand name, as well as the Crodo brands (with the exception of the brand Crodino). Besides the trademarks, the perimeter includes the manufacturing and bottling facility, located in Crodo, Northern Italy, and the attached water springs as well as the inventories.

In the fiscal year ended 31 December 2016 the brands perimeter sold achieved total net sales of € 32.8 million and CAAP (Contribution after A&P), before allocated costs and depreciation, of € 6.3 million. The total net sales relating to the brands sold represented approximately 2% of Gruppo Campari’s net sales in FY2016. Italy is the brands’ core market, accounting for 84.3% of the overall net sales in FY2016. The overall deal consideration corresponds to a multiple of approximately 13 times the CAAP (Contribution after A&P), before allocated costs and depreciation, relating to the brands sold.

The transaction is expected to be completed by the end of 2017.

As part of the transaction and effective from closing, Gruppo Campari and Royal Unibrew will enter into a multi-year manufacturing agreement, under which Royal Unibrew will continue to manufacture certain Gruppo Campari’s owned products which are currently produced at the bottling facility located in Crodo.

The entire business sold entered Gruppo Campari in 1995 via the Group’s first acquisition. The range was part of a larger brand portfolio acquired including also the non-alcoholic aperitif Crodino, which is excluded from the announced disposal and remains today a key owned brand of Gruppo Campari. Over the years, Gruppo Campari has successfully introduced various line extensions, further augmenting the established Lemonsoda business, the undisputed market leader in the lemon-flavoured soda segment in Italy.

This transaction fits Gruppo Campari’s efforts to streamline its brand portfolio and focus on its core spirits business. Since the beginning of 2017 Gruppo Campari has divested several non-strategic assets for a total value of approximately € 310 million.

Royal Unibrew A/S, a Danish limited liability company listed on the Nasdaq Nordic Stock Exchange, is a major beverage player within beer, soft drinks, waters, ciders, energy drinks and non-alcoholic malt drinks, holding leading positions primarily in Northern Europe, Italy and in the international malt beverage markets.

Bob Kunze-Concewitz, Chief Executive Officer-Gruppo Campari: ‘The sale of the Lemonsoda and Crodo business marks a further key step in our strategy of streamlining our non-core activities. In particular, with this transaction we exit the soft drinks business, while retaining our core Crodino brand, to further focus on our key aperitif business in Italy. We are very pleased to sign this transaction with Royal Unibrew, a focused player and brand developer in the soft drinks and mineral water segments, and a perfect fit for the Lemonsoda business. Moreover, we are glad to transfer the Crodo facility to a Group investing in the soft drinks segment with ambitious growth plans for the manufacturing site.

Hans Savonije, CEO Royal Unibrew: Today’s acquisition cements our commitment to the Italian market and expands our position. In Ceres Strong Ale, we have one must-stock product, and now we’re adding Lemonsoda as number two to our portfolio. Lemonsoda is the Italian market leader within citrus-based soft drinks products and is almost as widely distributed as Ceres Strong Ale. This is one of the reasons why we consider the new business a good match. We believe that our extensive multi-beverage experience will enable us to generate growth in the acquired business.’.

Publishing date: 
04 Oct 2017
Last updated Oct 04 2017