C&C Group to Acquire Gleeson Group in Ireland
Irish and international branded cider and beer producer C&C Group has conditionally agreed to acquire the Gleeson Group, a leading supplier and distributor of beverages in Ireland for Eur12.4 million in cash. Existing debt of Eur45.6 million implies an enterprise value of Eur58 million.
The Gleeson Group is the largest distributor of packaged long alcohol drinks (LAD) to the licensed on-trade in Ireland. Its leading trading platform represents a number of beer, wine and spirits brands on an agency basis. It manufactures Tipperary mineral water, Finches soft drinks and a range of own label brands for a number of retailers. It also supplies PET bottles to drinks manufacturers.
On a pro forma basis the business generated EBITDA of Eur10.2 million for the 12 months to June 2012 implying a multiple of 5.7x 2012 EBITDA before synergy benefits. On completion, C&C’s pro forma net debt to EBITDA ratio will be less than 1.5 times. The acquisition is expected to be immediately earnings accretive.
“The acquisition has the potential to transform our existing Irish business through the addition of an extensive distribution network and the creation of an attractive, multi-beverage brand platform,” comments Stephen Glancey, chief executive of C&C Group. “Over the past three years, we have progressively diversified the group’s brand portfolio in Ireland from the single premium cider brand Bulmers to a broader LAD range including Tennent’s, Caledonia Smooth and a number of beer agency brands. The acquisition of the Gleeson Group accelerates the re-shaping and diversification of C&C in Ireland.”
