Davide Campari-Milano SpA, the Italian distiller, is set to acquire the global distribution business of French cognac maker Grand Marnier Group to streamline the company’s sales and hasten its expansion, according to a person familiar with the process.
Grand Marnier, which produces cognac, armagnac, pineau and wines, had been working with Rothschild to explore strategic options for the business including a sale, people with knowledge of the matter said in November. Trading in Paris-based Grand Marnier’s shares was suspended Monday in advance of an announcement. A deal could be announced as early as Monday, the person said.
Campari shares rose 0.9 per cent to €8.02 at 10:59 am in Milan, reversing an earlier loss. Grand Marnier has risen 17 per cent over the past twelve months, giving it a market value of €427 million. Representatives for Campari and Grand Marnier declined to comment.
Grand Marnier’s distribution is currently shared around the globe by champagne maker Moet Hennessy, British distiller Diageo Plc and several independent wholesalers.
Campari has grown via a slew of acquisitions during the nine-year tenure of Chief Executive Officer Robert Kunze-Concewitz, yet the maker of Wild Turkey bourbon and Skyy vodka hasn’t done a deal since completing two in 2014. The CEO said at the time that the company was looking to take a "pause" from deal-making.
Grand Marnier was founded in 1827 by Jean-Baptiste Lapostolle, who started a distillery producing fruit liquors. Its flagship cognac is often used to make Cosmopolitan cocktails, favored by Sex and the City character Carrie Bradshaw and singer Madonna. The company generates about €140 million in annual sales, more than half of which comes from the US.
News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.
