Campari Group acquires Courvoisier cognac for $1.32bn

Campari Group has on Tuesday announces the completion of the acquisition of Beam Holdings France S.A.S. (now renamed Courvoisier Holding France S.A.S.), which owns of the Courvoisier brand, from Beam Suntory Inc.

Campari has entered into exclusive negotiations with Beam Suntory, which is now rebranded as Suntory Global Spirits, in December last year to acquire the business, and both companies signed the agreement on 26 February.

The $1.32 billion deal (£1.05bn), the largest in Campari Group’s history, will see cognac becoming the fourth major leg of Campari Group, along with aperitifs, bourbon and tequila.

“We are very pleased to acquire a top four historical cognac house, Courvoisier with great latent equity and highly acclaimed expressions,” Bob Kunze-Concewitz, Campari Group chief executive said in December.

“The addition of Courvoisier cognac to our portfolio of global priorities is a rare and unique opportunity to expand our premium spirits portfolio and cognac offering. By leveraging our heavy cognac expertise at board and executive team level, Campari Group has a fantastic opportunity to reinforce this brand’s credentials as a global icon of luxury, priming cognac to become Campari Group’s fourth major leg along with aperitifs, bourbon and tequila.

“Concomitantly, we are looking forward to accelerating our premiumisation journey, further enriching our RARE portfolio, the division created to unlock and accelerate the growth potential of a select range of high-end individual expressions in our core premium spirits markets.”

The purchase price was $1.17 billion, including $410 million as the book value of maturing inventory estimated at 30 April.

In addition, Campari will pay an estimated amount of around $30m as value of finished goods stock take and  an earn-out for a maximum amount of $120m, payable in 2029, based on the achievement of net sales targets realised in full year 2028, as previously disclosed. Sould the earn-out be paid, the total enterprise value will be $1.32bn.

The transaction was financed in cash using the group’s available resources.