Campari has reached an agreement with members of the family that owns the French listed company Societe des Produits Marnier Lapostolle (SPML) to acquire control of the company. The agreement provides that Campari buy now 17,19% in full ownership, 1,06% in bare ownership and 1,54% in usufruct of the capital.
Also planned is the acquisition from 2021 (call/put options) of all the remaining shares held by members of the controlling shareholder family, corresponding to 26,60% in full ownership and 2,24% in bare ownership.
It's finally coming a takeover bid on the remaining shares of Spml at a price of 8,0501 euros per share in cash (60,4% premium), plus an earn-out relating to the potential sale of a real estate property in St. Jean Cap Ferrat (France) owned by Spml.
Excluding the effects of the sale of real estate, the total implied Equity Value for 100% of Spml will be 684 million euro, while the total Enterprise Value implied for 100% of Spml will be 652 million. The agreement provides the delisting of the stock from the Paris Stock Exchange.
At the same time as the acquisition of the initial shares in Spml, Campari subscribed an exclusive agreement with the French company for the worldwide distribution of the Grand Marnier spirit portfolio.
“We are honored to consolidate this alliance between the controlling shareholder family of Spml and Gruppo Campari – commented Bob Kunze-Concewitz, CEO of Campari –. Through the Grand Marnier brand, we add a premium product and a distinctive brand to our global priority brand portfolio, which allows us to enrich our product mix, and further consolidate our position as the leading supplier of premium spirits and specialty bitters worldwide. world".
The CEO then added that, “with the acquisition of Grand Marnier, Campari continues to implement its acquisition strategy in a disciplined and consistent manner also at a financial level, as it consolidates a brand with high margins and cash generation, which we expect it to have an immediate accretive effect on existing business".
“We expect to close the transaction by the end of June”, added Kunze-Concewitz in the conference call with analysts, specifying that the documents for the offer will be presented today. “We will launch the takeover bid after we have received the go-ahead from the Antitrust – he concluded – and we expect this to happen fairly soon. We aim to close the offer by the end of the first half year. We think that from July onwards we will be in a position to consolidate the acquired company, but it will also depend on the competent authorities”.
Positive stock market reaction: mid-morning the Campari title gains 1,8%, at 8,50 euros per share.
