The Milan based Brewer Davide Campari-Milano SpA (BIT:CPR), Chief Executive, Bob Kunze-Concewitz, has expressed that he expects a majority of the company’s sales to come from the America’s region, following the acquisition of Jamaican Rum maker, Lascelles deMercado & Co.
According to Reuters, Italy, which used to account for 34.4% of sales will now contribute just 25%, after Campari’s gigantic acquisition in the Appleton rum maker, believed to be worth $414.8 million, or 81.4% stake in the Jamaican company.
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Following this acquisition, Campari will now hold a controlling stake in the company, and according to a statement released today as noted by Bloomberg, the company has said it will make a formal tender offer for the shares, in a deal that will not only usher its entry into the Rum Industry, but will also improve the company’s presence in the industry.
This will make it a leading manufacturer and distributor in Jamaica and also boost its market presence in other countries like Mexico, Canada, and the U.S. Citigroup Inc. (NYSE:C) Analyst, Mauro Baragiola, wrote in a note regarding the acquisition saying, “The acquisition of a family of premium rum brands will allow Campari to leverage its growing portfolio of premium vodka, bourbon and tequila, while allowing it to boost sales and efficiencies of its network.”
Other details of the acquisition expressed that the deal excludes other assets of Lascelles deMercado, such as insurance, transportation, and other securities, which the Jamaican company is divesting.
The proforma sales for the acquisition stood at $265.4 million for the year ending Sept 30th, 2012, and the acquisition will be funded by credit facilities underwritten by Bank of America Corp (NYSE:BAC), Banka Intesa, and Deutsche Bank AG (NYSE:DB); while Bank of Ameica’s Merrill Lynch acted as the Legal Advisor, notes Bloomberg.
Following the acquisition, Davide Campari-Milano SpA (BIT:CPR), shares rose 6.68% in Milan or €0.38 per share, to trade at €5.84 from the previous close.