The US will become Camparis largest market, following the takeover of Marnier-Lapostolle

The US will become Campari's largest market, following the takeover of Marnier-Lapostolle

Gruppo Campari has followed yesterday's reports of a move for Marnier-Lapostolle with an announcement today of a EUR684m (US$761.4m) takeover of the French spirits company.

The acquisition, comprising an immediate share block purchase ahead of put and call options for family shareholder stakes and a tender offer, will see the US move to become Campri's largest market in sales terms. The Italian company has made a spate of brand purchases in recent years, as it looked to move its focus away from its domestic market.

Prior to today, Italy represented around 25% of the group's top-line.

Marnier-Lapostolle – What has Gruppo Campari bought for US$760m? - Click here for the facts

The purchase kicks off with an initial 17.2% stake that will be bought from the controlling family shareholders of the listed company. Then, from 2021, the group will, via put-and-call options, buy the remaining shares held by the family shareholders, which accounts for 26.6% of Marnier-Lapostolle. Full control, meanwhile, will be attained through a Tender Offer to remaining shareholders, with the price set at EUR8,050 per share - a 60.4% improvement on the current share price.

Campari will take over the worldwide distribution of Grand Marnier's spirits portfolio, which comprises a range of high-end Cognacs under the Grand Marnier name as well as the orange-infused namesake liqueur brand. The distribution deal takes effect from 1 July until the end of 2021, then renewed for consecutive five-year periods after 2021.

The Grand Marnier liqueur will be grouped in Campari's 'Global Priorities' portfolio, which includes the Campari, Aperol, Skyy and Wild Turkey brands as well as the Jamaican rum portfolio.

CEO Bob Kunze-Concewitz said: "This acquisition represents a perfect fit with our external growth strategy in terms of brand profile, distribution and financial framework. With Grand Marnier, we add a premium and distinctive brand to our global priorities portfolio, thus driving richer product mix, and we further consolidate our position as the leading purveyor of premium liqueurs and bitter specialties worldwide.

"Grand Marnier enhances our exposure to the premium on-trade, across all markets, to the benefit of the group's overall portfolio, as well as to Global Travel Retail. In particular, as a key ingredient in many classic cocktails … , Grand Marnier strengthens our quest to further capitalise on the revival of classic cocktails, particularly in the US. 

"By acquiring Grand Marnier, we continue leveraging our acquisition framework in a very disciplined and consistent manner also from a financial viewpoint as we consolidate a high-margin brand and cash-generative business, expected to determine an immediate accretive effect on the existing business."