Campari is off-loading some of its "non-core" assets

Campari is off-loading some of its "non-core" assets

Gruppo Campari has agreed deals to sell its liqueur brand Limoncetta di Sorrento and the pharmaceutical unit of its J Wray & Nephew business for a total of around EUR19m (US$23m). 

The Italian group said the moves, announced today, are part of its strategy to focus on its “core high-margin spirits business” through a streamlining of its “non-core businesses”. 

Campari has signed an agreement to sell its Limoncetta di Sorrento trademark, a lemon-based liqueur brand, and 100% of the share capital of Alimenta, owner of the plant for the production of the concentrate, to Italian firm Lucano 1894. The deal, expected to close by the end of next month, is worth around EUR7m.  

Campari acquired the Limoncetta brand when it bought its parent, Gruppo Averna, in June for EUR103.75m. 

Separetely today, the firm said it has agreed the sale of the Federated Pharmaceutical division of J Wray & Nephew to Jamaica's Kirk Distributors. The deal, expected to close by the end of March, is worth around US$14.4m.

Rum producer J Wray & Nephew became part of Campari two years ago when its parent company, Lascelles deMercado & Co, was acquired by the Italian firm for US$414.8m.

Campari said the sale of both businesses will affect it full-year group sales by less than 1%. 

In year-to-date results, reported last month, Campari said its net profits were down 16%, while sales fell 1%