FRANCE. Following the acquisition of Allied Domecq in April 2005, Pernod Ricard has announced the transfer to Fortune Brands of Allied-owned brands including Canadian Club, Courvoisier, Sauza and Maker’s Mark.
The deal includes more than 25 spirits and wine brands, related production facilities and distribution operations in certain markets, according to Fortune Brands. It is expected to more than double the Illinois-based company’s sales of spirits and wine.
The brands acquired by the Jim Beam owner were initially valued at £2.8 billion (US$4.98 billion), Pernod Ricard said in a statement. The final financial contributions of these brands will give rise to an additional payment by Fortune Brands to Pernod Ricard of around £199 million (US$354 million). The payment will be settled in March together with other price adjustments, such as working capital which is estimated to give rise to £82 million (US$146 million) payment in favour of Fortune Brands.
Commenting on the completion of the deal, CEO Patrick Ricard said: “Our partnership with Fortune Brands will remain an example of co-operation and represents what two groups, otherwise competiting, can achieve together when their strategic objectives are complementary.”
Fortune Brands Chairman and Chief Executive Officer Norm Wesley commented: “While we have already been managing, marketing and selling these brands, we are pleased to have substantially completed the formal transfer of assets from Pernod Ricard within the timeframe we envisioned. As we mark this milestone, the integration of these brands and operations is progressing very well, and this high-return acquisition is on track to add 35 cents or more to Fortune Brands’ earnings per share in 2006.”
The brands acquired by Fortune include Sauza tequila, Maker’s Mark bourbon, Canadian Club whiskey, Courvoisier Cognac, Laphroaig single malt Scotch whisky and Clos du Bois wines. The company also acquired the former Allied Domecq distribution operations in the UK, Spain and Germany, and for US wines.
The acquisition expands its international presence and is expected to more than double the company’s sales of spirits and wine. Fortune Brands’ portfolio already included Jim Beam bourbon and De Kuyper liqueurs and cordials.
Following the acquisition of Allied Domecq, Pernod Ricard became the number two liquor group in the world. The Pernod Ricard portfolio comprises 15 key brands: Ricard, Ballantine’s, Chivas Regal, Kahlúa, Malibu, Beefeater, Havana Club, Stolichnaya, Jameson, Martell, The Glenlivet, Jacob’s Creek, Montana, Mumm and Perrier-Jouët.
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Pernod Ricard and Fortune Brands confirm potential offer for Allied Domecq – 05/04/05
