Pernod Ricard has announced that it has signed an agreement to acquire premium spirits maker Castle Brands for $223 million (€201.6 million).
The acquisition will strengthen Pernod Ricard's whiskey portfolio by adding a range of brands including, among others, Jefferson's Bourbon, Clontarf Whiskey, Brady's Irish cream, and Knappogue Castle.
Recently, the spirits giant acquired Kentucky-based Rabbit Hole Whiskey brand and the TX brand of whiskeys.
'A Key Category'
Chairman and chief executive of Pernod Ricard, Alexandre Ricard, explained, "Bourbon is a key category in the US which is our single most important market. This deal aligns well with our consumer-centric strategy to offer our consumers the broadest line-up of high-quality premium brands."
The acquisition will be carried out through a cash tender offer followed by a merger via a subsidiary of Pernod Ricard.
The transaction, which is expected to close the fourth quarter of 2019, is subject to customary conditions, the spirits giant said.
A Planned Move
President and chief executive officer of Castle Brands, Richard J Lampen, said, "We are very pleased to reach an agreement with Pernod Ricard, which is the result of months of planning and deliberation by our board of directors.
"We are confident that this transaction, upon closing, will deliver immediate and substantial cash value to our shareholders."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
