Blog: Independent sale - cast out preconceived ideas?
Olly Wehring | 13 December 2006
The Independent Liquor sale is a story we have been following in detail since the offset, so it was great late last night when we got the call - from our source close to the matter - allowing us to be first to the line with news of a done deal.
That a private equity consortium has come out on top may surprise some industry followers. These companies, by their nature, cannot extract the synergies that drinks groups can from acquisitions so are often unwilling to enter into expensive bidding wars.
That, from what we understand, was not the case here. It looks like the battle to gain control of Independent got too rich for the likes of Lion Nathan and Diageo, whilst a consortium of Pacific Equity Partners and CCMP held its nerve.
The other assumption about private equity firms - again often wrong - is that they are in the game for the short-term gain, looking to quickly cut costs and boost value before placing the business once again on the market.
But one quote I read this morning from Grant Saligari, an analyst at Commonwealth Securities in Sydney, shed a different light on Independent’s immediate future. “Independent will generate good cash flow and the bidders can take a long-term view of the business,” he said. “Private equity have more flexibility in how they finance the business, and we can expect them to start loading Independent with debt.”
just-drinks is in Berlin this week for Bar Convent Berlin. Here's the second and final part of Andy Morton's blog, which will keep you up-to-date at one of Europe's most important dates in the alcohol...
just-drinks is in Berlin this week for Bar Convent Berlin. Here's the first part of Andy Morton's daily blog, which will keep you up-to-date at one of Europe's most important dates in the alcohol indu...
Responding to criticism on social media is tough. You've got to engage the consumer without starting an argument and - ideally - get them on side....
Want to know how The Coca-Cola Co-backed Keurig Kold - released in the US yesterday - works?...
- AB InBev, SABMiller - Here's what'll happen next
- Is time right for TWE to move for Diageo's wines?
- Is Brown-Forman at the end of the SoCo road?
- Will a sexed-up SABMiller tempt AB InBev?
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- AB InBev makes formal offer for SABMiller
- Diageo secures Xerox Corp CFO as finance head
- Tesco pulls several Carlsberg SKUs in UK
- Diageo makes US$780.5m beer deal with Heineken
- SABMiller formally rejects AB InBev's offer
- The IWSR Duty Free/Travel Retail Summary Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research