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Campari acquires Wild Turkey

Gruppo Campari announces it has signed an agreement to acquire Wild Turkey from Pernod Ricard, marking the largest acquisition in Campari’s history and cementing its position as a leading company in the US and international premium spirits markets.

The acquired business includes the Wild Turkey brands, American Honey liqueur, distillery facilities in Kentucky, USA, and aged liquid and finished product inventory.

The total purchase price for the acquisition is US$ 575 million (or EUR 433 million at current exchange rate), corresponding to 9.7 times the historic CAAP (Contribution after Advertising and Promotion expenses) and 12 times the expected EBITDA in the first 12 months following the deal’s closing. The transaction, subject to antitrust approvals, is expected to close prior to June 30, 2009 and the consideration will be paid for in cash.

Following this acquisition, the weight of the Group’s business outside Italy is expected to increase to almost two-thirds of its sales.

Bob Kunze-Concewitz, Chief Executive Officer: “With Wild Turkey Campari adds a brand of strategic relevance to its portfolio and further enhances its premium offering. This acquisition is another key step in the building of a leading player in the global spirits industry. It is a unique opportunity to enter the attractive bourbon whiskey category and exploit its growth potential through a global and leading brand. The transaction demonstrates our commitment, in line with our strategy, of continuing growth in the profitable US spirits market. In addition, Campari expands its presence in key international markets such as Australia, where the acquisition provides the foundation for establishing its own distribution platform, and Japan.”

Wild Turkey

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Thursday, September 21, 7:05 am

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