Shares in C&C surge after company announces €234m Vermont Hard Cider acquisition
SHARES in the company that makes Bulmers and Magners ciders have surged after it announced plans to buy a US drinks maker.
Shares in C&C Group hit their highest level since 2008 on the stock exchange today, after it announced the $305m (€234m) purchase of Vermont Hard Cider Company.
C&C more than offset first-half earnings that missed estimates.
Shares were up 8.9pc to €4.11 each on the news, valuing C&C at €1.4bn.
Vermont Hard Cider Company makes fast growing American cider brand Woodchuck.
C&C is looking at the US market to make up for tough trading closer to home.
It comes after C&C said today that profits will be “at the lower end” of a forecast range. It blamed an unusually wet summer in the UK and Ireland for weak sales.
“The summer just hasn’t happened in terms of parties and barbecues,” Chief Financial Officer Kenny Neison said on a call, adding that he’s confident in the “medium-term outlook” for C&C and that the second half will be more resilient.