Investors toast €129m Campari deal
Italian drinks group Campari will pay €129m for three Clonmel-based drink brands less than six months after they were sold by Ireland's C&C.
Campari is buying the Carolans, Frangelico and Irish Mist brands from William Grant & Sons, which acquired them in a €300m deal earlier this year.
Investors welcomed the news, with shares in Campari, listed in Milan, closing up 1.1pc at €4.34. The business has a market capitalisation of €2.5bn.
According to the seller, the sale was agreed following an approach from the buyer, which made "a compelling offer".
Campari CEO Bob Kunze-Concewitz said: "This still leaves us with plenty of room for further acquisitions."
The seller William Grant & Sons is a Scottish privately owned, family-controlled business. Its core brands include Scottish whiskies Glenfidich and Grants, as well as Sailor Jerry rum and Hendricks gin.
William Grant & Sons will remain the owner of the Tullamore Dew brand and the Clonmel bottling facility.
Commenting on the impact of the deal on Campari equity, analysts Evolution Securities said the US accounted for 50pc of sales of the three brands being acquired, and that the deal would strengthen the Italian group's US presence.
Evolution said the deal was in line with Campari's strategy of enhancing its portfolio of premium brands.
The deal is expected to be completed on October 1.
Following the sale, the Campari-owned brands will continue to be bottled in Clonmel, along with Tullamore Dew.
According to William Grant & Sons, the sale will not result in any jobs losses. Campari has signed a 10-year manufacturing services agreement for William Grant & Sons to continue to provide blending and bottling services.