Campari completes Wild Turkey deal

Italian drinks group Campari has announced its acquisition of Wild Turkey, the Kentucky straight bourbon, from Pernod Ricard in a £392m deal.

The move represents a statement of intent from Campari to establish themselves as a major player in the global spirits business.

The group is buying the brand from its French rival as Pernod announced a £901m rights issue as it seeks to pay down debt taken out to fund last year’s acquisition of Absolut vodka maker Vin & Sprit.

Wild Turkey, which is sold in more than 60 markets around the world, reports total volumes of about 800,000 nine-litre cases. Almost half its volumes are in the US, with other strong markets being Australia and Japan.

Campari, which is also getting Wild Turkey American Honey, a liqueur with volumes of more than 100,000 cases, said it was paying a multiple of about 12 times forecast underlying earnings for the 12 months following completion.

Bob Kunze-Concewitz, chief executive of Campari, said: "This acquisition is another step in the building of a leading player in the global spirits industry. It is a unique opportunity to enter the attractive bourbon whiskey category."

For Pernod, the sale Pernod continues to be on track in its quest to raise the €1 billion through asset disposals which it announced last July following the Absolut deal.

A Pernod statement said: “The sale of Wild Turkey is an important part of the disposal plan of non-strategic assets communicated after the Vin & Spirit acquisition.

“With the disposals of Glendronach, Cruzan, Bisquit, as welll as those of Serkova and Vin & Spirit brands sold at the request of the competition authorities, the overall disposal gross proceeds reach approximately €577 million as of today. The group confirms its intention to complete this plan within 12 months.”

The rights issue is being backed by the Ricard family, which holds for 12 per cent of the shares and 19 per cent of the votes.

Alan Lodge  08.04.2009