C&C Sells Spirits & Liqueurs Business To William Grant & Sons
C&C Group, a manufacturer and distributor of branded beverages in Ireland and the UK, has reached an agreement to sell its Spirits & Liqueurs business to William Grant & Sons Holdings (William Grant), an independent family-owned distiller headquartered in the UK, for a cash consideration of EUR300m payable on completion.
The sale is contingent upon approval of C&C shareholders. The group's Spirits & Liqueurs business has a portfolio of brands including Tullamore Dew, Carolans, Frangelico and Irish Mist, which are exported to around 80 international markets.
After completion of the sale, the Irish group will retain certain overhead costs, which are currently allocated to the division. The management team and employees of this business will be transferred to the buyer on disposal. The business employs 57 people in Ireland. William Grant will operate the packaging facility of the business located at the C&C’s manufacturing site in Clonmel County, Tipperary.
C&C Group said that the EUR300m proceeds will be applied towards debt reduction and general corporate purposes. The disposal will result in a pro-forma net debt to EBITDA of 0.6 times, based on the group’s 2009/10 financial performance.
Stephen Glancey, COO of C&C Group, said: “While the division represents a comparatively small
component of C&C’s overall earnings, the consideration reflects the quality of its brand portfolio and its strong market positions. The group intends to reduce debt and invest to support the continued development of a cider-led long alcohol drinks portfolio.”
Stella David, CEO of William Grant, said: “William Grant has a rich history in Scotchwhisky dating back to 1886, and we have been looking to further develop our non Scotch portfolio. Irish whiskey is a natural fit and the C&C spirits business provides a unique opportunity to acquire a number of significant brands, enter the highly desirable and dynamic Irish whiskey category and invest in and grow the value of these brands over the long-term.”
C&C Group recently acquired the Tennent's beer brand, which is mainly sold in Scotland and Northern Ireland, and The Gaymer Cider Company, which produces a range of branded and private label cider for the on and off-trade in the UK.
William Grant & Sons distils certain brands of Scotch whisky, including the single malt Glenfiddich, The Balvenie range of handcrafted single malts, blended Scotch Grant’s and other spirits brands such as Hendrick’s Gin, Sailor Jerry Spiced Rum, and Milagro Tequila.
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