Gruppo Campari announced it has reached an agreement with the controlling family shareholders for the takeover of the French listed company Société des Produits Marnier Lapostolle S.A.(SPML), maker of the iconic Grand Marnier brand, in a deal worth $760 million.

 

Under the terms of the agreement, Campari will initially acquire 17% of SPML shares, and then go on to gain majority control through a tender offer on the French Stock Exchange. If Campari fails to gain more than half of SPML’s shares, the family shareholders have agreed to sell their remaining shares to Campari, which would give the group a controlling stake from 2021. In addition, beginning July 1, Campari will assume global distribution rights for SPML’s spirit brands, including Grand Marnier Cordon Rouge, Cherry Marnier, Louis Alexandre, Cuvée du Centenaire, Cuvée du Cent Cinquantenaire and Quintessence.

 

“This acquisition represents a perfect fit with our external growth strategy in terms of brand profile, distribution and financial framework,” said Bob Kunze-Concewitz, chief executive officer of Gruppo Campari said in a company statement. “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.”

 

The acquisition of the Grand Marnier brand, which is the eight largest liqueur brand in the U.S., selling 500,000 cases last year, will bolster Gruppo Campari’s already leading place in the liqueurs space, and will add to the company’s portfolio which includes Aperol, Frangelico, Cynar, Averna, and Braulio, reports Shanken News Daily.

 

Commenting on the deal, Campari chief executive officer, Bob Kunze-Concewitz said “By acquiring Grand Marnier, we continue leveraging our acquisition framework in a very disciplined and consistent manner also from a financial view point as we consolidate a high-margin brand and cash generative business, expected to determine an immediate accretive effect on the existing business.”