Gruppo Campari to buy out French distiller Grand Marnier
16 Mar 2016
Italy's Gruppo Campari, the world's sixth largest spirits company, yesterday struck a deal to buy French distiller Grand Marnier group for €684 million ($753 million).
Gruppo Campari said that it had reached an agreement with the controlling family shareholders of Société des Produits Marnier Lapostolle, the company that owns Grand Marnier.
Around 50-per cent stake of Société des Produits Marnier Lapostolle is held by the family of the founder of Grand Marnier, while the rest is free float.
Gruppo Campari will initially acquire about 20 per cent of the shares of Société des Produits Marnier Lapostolle from the family that controls the company and acquire the remainder of the family's holdings by 2021. That would give Gruppo Campari a 28.8-per cent total stake.
Gruppo Campari will also acquire the remaining free float shares through a tender offer by offering to pay €8.05 a share in cash, a 60 per cent premium to Société des Produits Marnier Lapostolle's Friday closing price.
The deal also includes Gruppo Campari paying €80 million upfront for the planned sale of a historic villa surrounded by a 14-hectare (34.6-acre) botanical garden located on the French Riviera.
Gruppo Campari said it would delist Société des Produits Marnier Lapostolle if it acquired a stake of more than 95 per cent.
Gruppo Campari has also entered into an exclusive agreement to be the worldwide distributor for Grand Marnier products.
Grand Marnier's distribution is currently shared around the globe by Moet Hennessy, Diageo Plc and several independent wholesalers.
Grand Marnier, which produces cognac, armagnac, pineau and wines, hasbeen working with Rothschild to explore strategic options for the business including a sale.
Marnier-Lapostolle was founded in 1827 by Jean-Baptiste Lapostolle by putting up a modest distillery in Neauphle-le-Château, a small village near Paris.
The distillery soon acquired a reputation for fine fruit liqueurs and has now become the world's fifth largest buyer of Cognac.
The distillery's fortunes dramatically changed when the business was taken over by Eugéne Marnier Lapostolle, the founder's son and his son-in-law, Louis-Alexandre Marnier.
Today Grand Marnier is sold in more than 150 countries and has annual revenues of about €152 million ($168.6 million), more than half of which come from the US.
Grand Marnier was originally named 'Curaçao Marnier' in line with the company's range of liqueurs.
The Marnier-Lapostolle family owns 50 per cent of Sociéé des Produits Marnier Lapostolle. Its current chairman, Jacques Marnier-Lapostolle runs the company alongside other fifth generation family members.
Commenting on the transaction, Bob Kunze-Concewitz, CEO of Gruppo Campari said, ''Grand Marnier is a French icon, with a rich 150-year history for which we have profound respect. 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,'' he added.
Founded in 1860 by Gaspare Campari who invented the bright red bitter-sweet aperitif, Campari is the sixth-largest spirits company with a portfolio of over 50 premium and super premium brands marketed and distributed in over 190 countries worldwide.
