Pernod Ricard Sells Bourbon Businesses
Pernod Ricard announces that it has signed a definitive agreement to sell its Wild Turkey American straight bourbon and related businesses to Gruppo Campari for a total purchase price of $575 million to be paid in cash, or 433 million euros at current exchange rate, representing approximately 10 times the brand's historic contribution after advertising and promotion.
Pierre Pringuet, chief executive officer for Pernod Ricard, says, "Confirmation of our target for strong growth in net income despite current environment demonstrates Pernod Ricard's resilient business profile. By accelerating its deleveraging plan, Pernod Ricard will enhance its financial flexibility for growth."
The transaction includes the Wild Turkey brands, along with American Honey liqueur, distillery facilities in Kentucky and related assets, together with aged bulk bourbon inventory. It also provides that Pernod Ricard will continue to distribute the Wild Turkey brands in Australia and New Zealand, for a transitory period, and in Japan, the second largest non-U.S. market, pursuant to distribution agreements with Campari. The transaction is subject to antitrust approvals and is expected to close in the second quarter.
Pierre Pringuet, chief executive officer for Pernod Ricard, says, "Confirmation of our target for strong growth in net income despite current environment demonstrates Pernod Ricard's resilient business profile. By accelerating its deleveraging plan, Pernod Ricard will enhance its financial flexibility for growth."
The transaction includes the Wild Turkey brands, along with American Honey liqueur, distillery facilities in Kentucky and related assets, together with aged bulk bourbon inventory. It also provides that Pernod Ricard will continue to distribute the Wild Turkey brands in Australia and New Zealand, for a transitory period, and in Japan, the second largest non-U.S. market, pursuant to distribution agreements with Campari. The transaction is subject to antitrust approvals and is expected to close in the second quarter.