Constellation Brands Sells UK Cider Business
Published:15-January-2010
By Staff Reporter
Constellation Brands, a US-based wine company, has completed the sale of its GaymerCider business to C&C Group of Dublin, Ireland for a purchase price of GBP45m, or approximately $70m, subject to closing adjustments. The company expects to use the proceeds from the sale to reduce borrowings.
The assets of the business being acquired include: a broad UK cider portfolio which includes the brands Blackthorn, Olde English and Gaymers; a cider production facility at Shepton Mallet, Somerset, England; and a distribution warehouse in Bristol, England.
The transaction diversifies C&C’s portfolio within the overall cider category, strengthens its packaged cider offering and provides it with an established mainstream draught cider brand. It also increases C&C’s channel weighting towards the off-trade to better reflect the channel split of the overall UK cider category and significantly enhances its route to market.
The Gaymer Cider Company generated net sales of GBP64m and EBITDA of approximately GBP5.4m in the year ended 28 February, 2009 and is expected to deliver strong EBITDA growth in the year to 28 February, 2010 .The business is well invested, both in terms of assets and brands. The gross assets of the business being acquired are approximately GBP43.5m.
