Gruppo Campari has continued with its strategy to offload its non-core assets

Gruppo Campari has continued with its strategy to offload its non-core assets

Gruppo Campari has offloaded its entire Italian still wines presence to Terra Moretti.

The company confirmed today that wine distributor Terra Moretti will pay EUR62m (US$65.4m) for the Azienda Vinicola Tenute Sella & Mosca and Teruzzi & Puthod assets. The transaction sees Campari exit the Italian still wine segment, a move that is in line with the group's intention to divest its non-core operations.

For just-drinks' exclusive interview with Campari's CEO from earlier this year, click here

The sale comprises the Sella & Mosca and Teruzzi & Puthod brands, as well as related vineyards, vinification and production facilities, inventory and real estate assets. In 2015, the two companies posted net sales of EUR21.4m.

Sardinia-based Sella & Mosca produces the Marchese di Villamarina, Tanca Farrà, Cannonau and Terre Rare red wine brands, as well as the Monteoro, Vermentino di Gallura, Terre Bianche and Torbato white wines. Teruzzi & Puthod, which is in Tuscany, produces Terre di Tufi, Arcidiavolo and Peperino.

The sale price quoted equates to 13.9 times pro-forma EBITDA for 2016.

"Terra Moretti Distribuzione (is) a perfect fit for Sella & Mosca and Teruzzi & Puthod, to further enhance the value and tradition of the brands at both national and international level," said CEO Bob Kunze-Concewitz. "This transaction confirms Gruppo Campari's strategy of streamlining non-core activities and increasing focus on its core spirits business."

Today's announcement comes 17 months after Campari started its exit from the still wine industry in Italy through the sale of Enrico Serafino to Krause Holdings. The group's wine presence now comprises only Chateau de Sancerre in France and Lapostolle in Chile, both of which were inherited through Campari's EUR684m purchase of Marnier-Lapostolle earlier this year.

Terra Moretti has partnered with NUO Capital to fund the transaction, which will close before the end of this year.