FRANCE: Vranken-Pommery Monopole announces capital increase for acquisitions
Vranken-Ponmmery has acquired five companies
Vranken-Pommery Monopole has announced a capital increase of EUR42.5m (US$54.3m) to help finance the acquisition of five companies, including Champagne house Bissinger & Co.
The Reims-based winemaker said late last week that EUR37.6m of the proceeds from raising share capital will be used for the purchases, which completed last week. The other EUR4.9m will be used to “strengthen” its own financial structure, the group said.
Bissinger & Co, which owns the SC du Domaine de Montchenois and SCEV des vignobles Vranken companies, is the “main acquisition”, the Champagne house said, without disclosing financial details.
The other three companies are broker GV Courtage; Aube-based vineyard owner SC du Pequigny and commercial agency and distributor CDA Gmbh.
Vranken-Pommery said the benefits of the acquisitions will include streamlining its "organisation and flows" and improving the security of its grape supplies.
Meanwhile, the company said that, due to “great economic uncertainty” it was unable to confirm its full-year guidance, as given in April.
Analysts Kepler said the news indicates that the group could struggle in the fourth quarter. “Beyond the fact that Vranken is threatening itself further with this acquisition (does not have the means to finance it internally), the revised guidance suggests that Q4 has started off poorly in our view,” it said in a note.
At the beginning of this year, Vranken-Pommery posted a 6.8% slide in sales in the 12 months to the end of December, as the final quarter of 2011 dragged on the full year.
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