FRANCE: Belvédère raises capital selling brands

Belvédère has said that it plans to sell its Pulco and Sirop Sport businesses to Orangina Group.

In a statement released on the Paris Bourse, the company said today (6 July) that it aims to offload its Pulco and Sirop Sport businesses to the soft drinks company for EUR178m (US$242.9 million) in an effort to reduce debt.

Combined with upcoming sales of assets in Poland and Florida, the sale would generate EUR200m ($271.85m) in cash and reduce debt to between EUR210m ($285.49m) and EUR230m ($312.68m) before the end of the year, according to the company.

In the statement, the French spirits and wine group said that as part of its strategy going forward, it would look to accelerate activities in the US, Russia and France. The company is looking to lift earnings before interest, tax, depreciation and amortisation (EBITDA) to over Euro 90m by 2009 from an expected Euro 70m this year.

In June, the Caribbean conglomerate CL Financial offered to relinquish its controlling stake in French wine and spirits group to the company's founders and managers. The offer was made to Jacques Rouvroy and Christophe Trylinski in a sale option agreement for EUR345m (US$460.3m).

Under the terms of the agreement, Belvédère's founders, who currently hold 22.13% of its capital, need to provide guarantees of payment by 31 July with the transfer of CL Financial's shares taking place by 30 September. Should this fail, then the companies board would be recomposed, giving CL Financial a majority of seats.