IRELAND: C&C Group agrees EUR12.4m deal for Gleeson Group
C&C Group says the deal will transform its domestic business
C&C Group has agreed to acquire Irish drinks firm Gleeson Group for EUR12.4m (US$16m), subject to regulatory approval.
Magners-owner C&C said today (22 November) it is a cash deal, with EUR4.4m deferrred for a year. Gleeson, with annual earnings of EUR10.2m to June this year, is the largest distributor of packaged LADs to Ireland's on-trade. It acts as agent for a number of beer, wine and spirits brands and produces Finches soft drinks and Tipperary mineral water.
C&C will also take on Gleeson's debt of EUR45.6m, bringing the enterprise value to EUR58m.
Gleeson, also a supplier of PET bottles, has 11 distribution depots across Ireland.
Stephen Glancey, C&C's CEO said the deal is a “significant investment” for the group in Ireland.
“The extended portfolio and direct distribution network should create a more resilient trading model that is better suited to dealing with the challenges of the both current and future trading environments,” he added.
The acquisition does not include Merry's cream liqueur or Gleeson's cider business, which are being retained by the company.
The deal is expected to complete by the end of C&C's financial year and is subject to approval from the Irish competition authority.
Shares in C&C Group were today up 1.76% at EUR3.99.
Last month the group reported a slight dip in half-year EBITDA, blaming poor summer weather in the UK. C&C also announced it has agreed a deal to acquire US-based craft cider producer Vermont Hard Cider Company for US$305m.
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