Gruppo Campari snaps up Marnier parent
Gruppo Campari has reached an agreement to take over French liqueur Grand Marnier’s brand owner, Société des Produits Marnier Lapostolle (SPML).
Campari will immediately acquire 17.19% of SPML, plus a further 2.6% from controlling family shareholders.
The group will also be appointed the exclusive global distributor of the Grand Marnier spirits portfolio.
Campari is offering €8,050 per share in cash, a 60.4% premium on the current share price.
On an equity basis, the cash and property asset deal values SPML at €684 million.
Campari expects to fully acquire SPML from the controlling family by 2021.
According to the deal, if “in the event that the outcome of the Tender Offer is such that Gruppo Campari comes to own less than 50.01% of SPML’s capital and voting rights, the family shareholders who are parties to the put and call options have undertaken to sell their shares before 2021 and to relinquish their double voting rights to the extent necessary for Gruppo Campari to acquire a controlling stake in SPML,” Campari said in a statement.
The transaction is to be funded with available cash.
Grand Marnier will be added to Gruppo Campari’s ‘Global Priorities’ portfolio, alongside Campari, Aperol, Skyy, Wild Turkey and the Jamaican rums.
Bob Kunze-Concewitz, Gruppo Campari CEO, said: “We are delighted to consolidate this alliance between the SPML controlling family shareholders and Gruppo Campari. Grand Marnier is a French icon, with a rich 150-year history for which we have profound respect.
“This acquisition represents a perfect fit with our external growth strategy in terms of brand profile, distribution and financial framework.
“In terms of route-to-market, Grand Marnier is a unique opportunity to continue leveraging our enhanced international distribution capabilities benefiting from a perfect fit of the distribution reach of the acquired business.”
He added that the Grand Marnier brand “strengthens our quest to further capitalize on the revival of classic cocktails, particularly in the US”.
SPML founded its liqueur business in 1827. In 2015, its annual turnover reached €151.7 million, with 92% of its finished good sales coming from outside France. The Grand Marnier portfolio accounted for 85% of its consolidated goods sales in 2015.
Gruppo Campari notched up reported growth of 6.2% in 2015, in spite of “increased weakness” in Russia and Nigeria.