William Grant will hold on to Tullamore Dew

William Grant will hold on to Tullamore Dew

 

Gruppo Campari has lined up the purchase of William Grant & Sons' recently-acquired liqueur brands Carolans, Frangelico and Irish Mist.

The Italy-based drinks company confirmed today (16 September) that it will pay EUR129m (US$167.6m) for the brands, which William Grant bought only five months ago from Ireland's C&C Group. William Grant described the offer from Campari as “compelling”, whilst noting that it “remains committed to making a significant investment in Ireland” .

Bottling operations at William Grant's Clonmel site in Ireland will be unaffected, with Campari signing a ten-year manufacturing services agreement for William Grant to provide blending and bottling services for the liqueur brands in Clonmel.

The deal sees William Grant hang on to the Tullamore Dew Irish whiskey brand from its C&C transaction. The company also said it is committed to “investing in the long-term value growth” of the brand.

“Whilst Tullamore Dew was the key focus in our newly-acquired portfolio, we always intended to develop the liqueur brands,” said William Grant's chief executive, Stella David. “However, we were offered a very attractive price from Campari and believe they will be able to develop these brands given their relevant expertise.”

Camapri's CEO, Bob Kunze-Concewitz, added: “With Carolans, Frangelico and Irish Mist we add a high-quality and profitable business with upside potential and further enhance the group’s premium offering. In particular, we increase our critical mass in the highly-profitable US market and strengthen our exposure to a number of key international markets, including Australia, Russia, Canada, Spain and the UK.

“This acquisition represents a perfect fit in our acquisition framework, in business and financial terms. Moreover, it will benefit from low risk and easy integration, as we already account for 60% of the acquired portfolio volume and we are the global source for Frangelico.”

Overall the acquired business is expected to contribute around 1m nine-litre cases and net sales of EUR50m per year, Camapri noted.

The deal is set to complete on 1 October.