Bols ‘could’ acquire all Passoã shares

Rémy Cointreau Group and Lucas Bols have finalised the terms of the Passoã joint venture, which “could” eventually see Bols acquire “all shares” in the brand.

The partnership, initially announced last month, aims to “further develop the global activities” of the Brazilian passion fruit liqueur brand.

Bols will assume operational and financial control of the JV, and Rémy Cointreau will deconsolidate Passoã from its group activities and financials.

While Rémy Cointreau will handle distribution, manufacturing, trademarks and inventory, Bols will contribute working capital and contribute “know-how and expertise” in cocktails and liqueurs.

It is noted that “in due time” Bols “could” acquire all shares currently held by Rémy in the JV.

The transaction is expected to close before the end of the 2016 calendar year.

“We are delighted to have the opportunity to further build the Passoã brand, a brand I have been acquainted with for the past 25 years,” said Huub van Doorne, CEO, Lucas Bols.

“With Passoã we add an iconic premium brand to our global brands portfolio, strengthening our position in several of our core markets while utilisation of our existing distribution network will be enhanced. Furthermore, we see ample opportunities to grow the Passoã brand in a number of markets, including the US.

“Passoã will benefit from our strategic focus, as a key brand in our global brands portfolio. The chosen transaction structure allows for a smooth transition while maintaining a prudent financing structure.

“With Passoã we are consolidating a high cash generative business, enabling us to capitalize on future growth opportunities. Adding the Passoã brand to our platform allows us to demonstrate how we can increase our operational leverage and thereby create shareholder value.”

Valérie Chapoulaud-Floquet, Rémy Cointreau CEO, added “Rémy Cointreau and Lucas Bols have had a long history of business partnerships and this joint venture is a new milestone in this fruitful relationship.

“The Rémy Cointreau Group always strives to do what is best for its brands, and we are confident that the Passoã brand will thrive and show its full potential under the management of Lucas Bols. Besides, the creation of this joint venture enables Rémy Cointreau to accelerate its refocus on its portfolio of exceptional spirits, which is at the core of the group’s strategy.”

Rémy Cointreau saw its fiscal 2016/17 Q1 reported sales fall 2.1% to €218.6 million, however end demand for Passoa returned to “healthy growth” in France and the UK.