IRELAND: C&C Group agrees EUR12.4m deal for Gleeson Group
C&C Group says the deal will transform its domestic business
C&C Group has agreed to acquire Irish drinks firm Gleeson Group for EUR12.4m (US$16m), subject to regulatory approval.
Magners-owner C&C said today (22 November) it is a cash deal, with EUR4.4m deferrred for a year. Gleeson, with annual earnings of EUR10.2m to June this year, is the largest distributor of packaged LADs to Ireland's on-trade. It acts as agent for a number of beer, wine and spirits brands and produces Finches soft drinks and Tipperary mineral water.
C&C will also take on Gleeson's debt of EUR45.6m, bringing the enterprise value to EUR58m.
Gleeson, also a supplier of PET bottles, has 11 distribution depots across Ireland.
Stephen Glancey, C&C's CEO said the deal is a “significant investment” for the group in Ireland.
“The extended portfolio and direct distribution network should create a more resilient trading model that is better suited to dealing with the challenges of the both current and future trading environments,” he added.
The acquisition does not include Merry's cream liqueur or Gleeson's cider business, which are being retained by the company.
The deal is expected to complete by the end of C&C's financial year and is subject to approval from the Irish competition authority.
Shares in C&C Group were today up 1.76% at EUR3.99.
Last month the group reported a slight dip in half-year EBITDA, blaming poor summer weather in the UK. C&C also announced it has agreed a deal to acquire US-based craft cider producer Vermont Hard Cider Company for US$305m.
- Whatever happened to binge Britain? - comment
- The dangers of squaring up to your competitor
- The US beer market - A level playing field for all
- Remy Cointreau's Q2 and H1 - preview
- Constellation and Ballast Point's "sticker shock"
- Sidney Frank CEO to head Clooney's import co
- Diageo sells off United Spirits' Bouvet Ladubay
- Irish whiskey brands could fail without bulk
- Captain Morgan distillation trial queried by USVI
- Diageo Australia appoints commercial head
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Future growth opportunities for global spirits
- Global Wine Market to 2019 - Market Size, Development, and Forecasts
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Wine Market: News and Events September 2015