C&C sells spirits & liqueurs business

30th Apr 2010 13:47

Magners cider maker C&C Group has sold its spirits and liqueurs division to whisky maker William Grant for €300m in cash.The proceeds from the sale will be used to reduce C&C's debt and for general corporate purposes. The pro-forma ratio of 2009/10 net debt to earnings before interest, tax, depreciation and amortisation (EBITDA) will decline to 0.6 when the disposal completes.C&C's spirits & liqueurs division comprises a portfolio of premium nich brands, such as Frangelico and Irish Mist, that are exported to more than 80 countries.In the year to 28 February 2009 the division's sales were €85.9m while EBITDA before exceptional items was €16.1m. In the fiscal year just finished EBITDA is expected to be in the region of €15.3m. The gross assets of the division at the end of February stood at just under €110m.Following the disposal, C&C will retain certain overhead costs which are currently allocated to the division. This overhead was €1.5m in the 2009/10 financial year. Stella David, chief executive of the Scotch whisky maker, said the company had been looking to develop its non-Scotch portfolio and the addition of Irish whiskey "is a natural fit".