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FRANCE/US. Pernod Ricard today announced the sale of its popular Wild Turkey bourbon brand to Italian drinks company Campari for US$575 million.
The French group said the move is designed to accelerate its deleveraging plan. It also announced its intention to raise €1 billion of capital by way of a rights issue
With the sale of Wild Turkey to Campari, Pernod Ricard said it has now completed nearly 60% of its €1 billion “non-strategic assets” disposal plan announced in July 2008
Further, its intention to raise €1 billion in equity capital by way of a rights issue will
strengthen its capital structure and address the major part of group refinancing needs until July 2013, the company said.
The Wild Turkey disposal price of US$575 million to be paid in cash (or €433 million at current exchange rates), represents approximately ten times the brand’s historic contribution after advertising and promotion.
The transaction includes the Wild Turkey brands, along with American Honey liqueur, distillery facilities in Kentucky and related assets, together with aged bulk bourbon inventory.
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It also provides that Pernod Ricard will continue to distribute the Wild Turkey brands in Australia and New Zealand for a transitory period, and in Japan, the second largest non-US market, pursuant to distribution agreements with Campari.
The transaction is subject to anti-trust approvals and is expected to close in the second quarter.
Pernod Ricard said that the sale of Wild Turkey is an important part of a €1billion disposal plan of non-strategic assets communicated after the Vin & Sprit acquisition. With the disposals of Glendronach, Cruzan, Bisquit, as well as of the Serkova and Vin & Sprit brands sold at the request of the competition authorities, the overall disposal gross proceeds have reached approximately €577 million as of today.
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