Pernod Ricard and Corby Distilleries have struck a deal in Canada involving the transfer of Corby's stake in Tia Maria to Pernod in return for brand representation gains for the Canadian drinks group.

The C$105m (US$91.2m) agreement sees Corby gain representation of Pernod brands in the country by selling its 45% stake in Tia Maria to the world's second largest wine and spirits group.

Under the agreement, Corby will continue to represent Pernod's brands in Canada for up to 15 years and take over the management of Pernod's Canadian business interests. Pernod will continue producing Corby`s owned-brands at its production facility in Walkerville, Ontario.

Corby will also acquire the international rights to Lamb's Rum and the Canadian rights to Seagram's Coolers as part of the deal.

André Hémard, previously COO of Pernod Ricard Canada, will be appointed COO of Corby. Armando de Medeiros, previously president and CEO of Pernod Ricard Canada, will be promoted to the position of CEO of another Pernod subsidiary in the near future.

Pernod Ricard Americas chairman and CEO, Michel Bord, said today (8 March): "This transaction brings together the best of two extraordinary organisations to the benefit of liquor boards, licensees and consumers in every region of the country.

"This reorganisation reflects our corporate approach of having strong local roots combined with a global reach and is supported by our common commitment to excellence and more precisely to being the supplier of choice for all of our customers."

Pernod, which owns 46% of Corby, expects to close the transaction by 2 July.

The transaction is expected to add approximately C$24m to Corby's revenue, in addition to approximately C$6m of revenue from Canadian representation of the former Allied brands, now owned by Pernod.

As a result of the transaction, Corby will gain Canadian representation of Pernod brands Chivas Regal and the Glenlivet scotches, Jameson Irish whiskey, Havana Club rum, Jacob's Creek and Wyndham Estate wines.

Corby president and CEO of Krystyna Hoeg said: "We are pleased that discussions with Pernod Ricard have resulted in a combined strategic approach to the Canadian market.

"We now have responsibility for the management of every aspect of our business, from sales and marketing to production and supply chain management. And, most importantly, we have strengthened our portfolio in all categories - spirits, wine and coolers."