FDBusiness.com

Italian drinks group Gruppo Campari has agreed to pay €103.8 million to acquire 100% of Fratelli Averna, an independently owned business, based in Caltanissetta, Sicily. Averna Group is a leading spirits company in the Italian market, owner of Averna, the second best-selling bitter inItaly, and one of the best well-known bitters worldwide. Averna Group also owns a portfolio of premium brands, among which, Braulio, a herb-based bitter, particularly known in Northern Italy, Limoncetta, a natural sweet liqueur made of lemon peel, and Grappa Frattina, through which Gruppo Campari enters the grappa category.

Founded in 1860, Gruppo Campari is a leading player in the global branded beverage industry with a portfolio counting more than 50 premium and super premium brands that spans three main segments – spirits, wines and soft drinks. The group is the sixthh largest player worldwide in the premium spirits industry, and its products are marketed and distributed in more than 190 countries worldwide.

Bob Kunze-Concewitz, chief executive of Gruppo Campari, comments: “With the acquisition of Averna Group, we continue to strengthen our portfolio of premium offerings and consolidate our position as the leading purveyor of premium Italian liqueur and bitter specialties worldwide. Adding a portfolio of brands with high quality, high margin and strong cash generation capability, this acquisition represents a great opportunity for us to leverage our international route-to-market for profitable growth, in line with our acquisition strategy. Other than in Italy, we will increase our critical mass in key Central European markets, particularly in Germany. Moreover, thanks to our strong distribution network in North America, we are very well positioned to benefit from the market’s growth potential, particularly in the US, where mixologists and local consumers are showing growing interest in Italian bitters and liqueurs in the on-premise channel. In this core market, with Averna, we will further enrich our existing offering of Italian specialities, including Campari, Frangelico, Cynar and Aperol.”

In the fiscal year ended 31 December 2013, Averna Group achieved total net sales of €61.8 million, up by +3.1% compared with the previous year. Approximately 40% of the 2013 net sales is generated by Averna and 11% by Braulio and Limoncetta. The total enterprise value for 100% of the share capital of Averna Group is €103.75 million. This corresponds to a pro-forma EBITDA multiple of 9.2 in fiscal year ended 31 December 2013. The closing date of the transaction is expected to be June 3, 2014 and the consideration will be paid in cash.