Gruppo Campari Acquires Super-premium Gin Brand
Gruppo Campari is acquiring most of the assets of BULLDOG London Dry Gin, an independently owned brand, for US$55 million plus the assumed liabilities and working capital for approximately US$3.4 million. The deal leaves cash-on-hand and other assets on BULLDOG’s balance sheet, resulting in approximate proceeds of $70 million at closing to BULLDOG’s shareholders, a multiple of 5.7x BULLDOG’s full-year 2016 revenue. Additionally, BULLDOG may receive an earn-out, payable upon the achievement of certain targets through 2021, potentially significantly increasing the total consideration.
BULLDOG Gin was created in 2007 by entrepreneur and former JP Morgan investment banker, Anshuman Vohra. Launched in the USA in 2007 and subsequently in Europe, BULLDOG Gin has experienced a meteoric rise and is the #4 premium (and above) gin in the world (IWSR) and also the fastest growing premium gin in the world by annual growth rate. With its iconic bottle and distinctive citrus forward flavour profile, BULLDOG is available in 95 countries, with a strong concentration in Europe. Spain, Benelux, Germany, the UK, Global Travel Retail, and the USA are currently the brand’s largest markets. BULLDOG Gin shipped 150,000 9L cases and achieved net sales of US$12+ million in 2016, increases of 24% and 22% year-over-year, respectively.
Gruppo Campari has distributed BULLDOG Gin since 2014 through its own distribution network, including the Global Travel Retail channel, by virtue of an exclusive five-year agreement with an attached call option to acquire ownership of the brand in 2020. Following a renegotiation of the deal terms, Gruppo Campari accelerated its purchase of the brand. The new deal structure enables Gruppo Campari to achieve a financially attractive proposition, allowing it to fully exploit the brand’s growth potential going forward by taking full control of the marketing strategy as well as the brand building initiatives.
Founded in 1860, Gruppo Campari is now the sixth-largest player worldwide in the premium spirits industry. It has a global distribution reach, trading in over 190 nations around the world with leading positions in Europe and the Americas. The group’s growth strategy aims to combine organic growth through strong brand building and external growth via selective acquisitions of brands and businesses.
