Campari completes US$1.2 billion Courvoisier Cognac acquisition

Campari Group has announced that it has completed its acquisition of Beam Holdings France, the owner of the Courvoisier brand.

The Milan-based spirits giant, which has a portfolio including the likes of Aperol, Grand Marnier and Cinzano, signed an agreement with Beam Suntory for the sale of Beam Holdings France S.A.S. (now renamed Courvoisier Holdings France S.A.S.) on 26 February this year for US$1.17 billion (around £933 million).

At the closing of the deal, the maturing inventory was priced at US$410m (£327m), a figure included in the price paid. An amount estimated at US$30m (£24m) related to finished goods in the seller’s in-market companies will also be paid by Campari Group, according to a stock transfer agreement.

An earn-out for a maximum amount of US$120m (£96m) will be payable in 2029 based on the achievement of net sales targets realised in full year 2028. Should that earn-out be paid, the total enterprise value will sit at US$1.32bn (£1.1b).

Customary price adjustment mechanisms will be calculated over the next 90 days.

In order to fund the deal, the drinks business previously reported how Campari Group had offloaded shares and debt, with outgoing chief executive Bob Kunze-Concewitz calling it a “once in a lifetime opportunity” when he announced the planned acquisition back in December.

Ending his near-two decade year tenure earlier this month, Kunze-Concewitz received a £25.7m “thank you” from the company. Prior to the Courvoisier deal, he oversaw some 27 acquisitions while at the helm.

He also oversaw very strong recent results, with an 8.6% rise in adjusted operating profits.