Campari, an Italian alcohol company, announced on October 31, 2022, that it signed an agreement to pay $420 million for an initial 70% ownership in Wilderness Trail Distillery, bolstering its bourbon (whiskey) range. Under the terms of the contract, Campari has the option to purchase the remaining 30% of the Kentucky-based bourbon and rye whiskey manufacturer in 2031.
The agreement specifies a current enterprise value of $600 million, making it the Italian company’s second-largest acquisition after its acquisition of Grand Marnier in 2016. With the acquisition, the company, which already owns Wild Turkey, is now able to dramatically increase production and ageing inventories to meet the demand for Campari’s premium bourbons in the years ahead.
On October 31st, 2022, Campari was the second best-performing stock on the FTSE MIB index of Milan, with its shares gaining 1.6%. To finance the transaction, which is expected to occur by the end of 2022, Campari said that it will use a combination of cash on hand and bank term loans, resulting in an increase in the current net debt/EBITDA-adjusted ratio from 1.5 times to 2.3 times. The US is already the largest market for Campari.
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