USA: Hicks, Muse, Tate & Furst to Sell Mumm and Perrier-Jouet Champagne Brands to Allied Domecq
Hicks Muse acquired Mumm and Perrier-Jouet in July 1999, in one of the first transactions to be made through Hicks, Muse, Tate & Furst Europe Fund, L.P. The companies were originally acquired by Hicks Muse for a consideration of Euro 293.5 million (approximately $310 million), funded with approximately Euro 185 million (approximately $163 million) of debt. Under Hicks Muse's ownership, the companies have significantly improved their operating performance and have generated cash flows that have been used to repay more than Euro 60 million (approximately $53 million) of that debt.
Mumm and Perrier-Jouet are two of the most prestigious international champagne brands. Mumm, the third-largest champagne house in the world, is best known for its Cordon Rouge label. Perrier-Jouet's key brands include the distinctive and luxurious Fleur de Champagne (Belle Epoque in Europe) vintage. In the fiscal year ended June 30, 2000, Mumm and Perrier-Jouet generated EBITDA of Euro 47.7 million (approximately $42 million) on revenues of Euro 158.5 million (approximately $139 million).
For Allied Domecq, the acquisition adds two world-class champagne brands to its portfolio and supports its objective of continuing to build a global wine business.
John Muse, a Partner of Hicks Muse, said: ''When we acquired Mumm and Perrier-Jouet last year, we saw an opportunity to invest behind two strong brands that would benefit from a more focused and targeted marketing strategy. We have been successful in implementing that strategy in partnership with the management team and believe that these brands are now two of the strongest in Champagne. We have also been successful in creating significant value for investors in our Europe Fund, who will realize a very attractive return on this investment.''
Since its formation in 1989, Hicks, Muse, Tate & Furst has completed or currently has pending more than 380 transactions with an aggregate capital value of approximately $44 billion. Headquartered in Dallas, the firm also has offices in New York, London and Buenos Aires.
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