USA – Campari Group, a major player in the global spirits industry, has said it raised 1.2 billion euros (US$1.31B) through a discounted share offering and an issue of convertible bonds to fund its planned acquisition of Courvoisier cognac brand and strengthen its finances.
In December, the company said that it had entered into exclusive negotiations with Beam Suntory to acquire Courvoisier cognac brand for up to US$1.32 billion.
The Italian distiller disclosed that the newly issued shares were priced at US$10.33 each, totalling US$712.6 million. These shares were discounted by 6.05% from their original price.
According to Campari, the new shares, which represent 5.6% of Campari’s issued and outstanding ordinary share capital, will confer the same rights, including dividend rights, as the existing ordinary shares.
In a news release, Campari said, “Upon issuance, the Issuer will submit a request to Euronext Milan for the admission to trading of the New Shares and expects the New Shares to be admitted to trading on Euronext Milan immediately after their issue.”
Additionally, Campari intends to collect US$602.95 million by issuing convertible bonds to investors that will mature over five years, unless previously redeemed, converted or repurchased and cancelled.
The Courvoisier producer expects profits from the shares and bonds, combined with the expected profits from the sales of the cognac, to strengthen Campari’s overall financial position.
Campari’s acquisition of Courvoisier will include an inventory of maturing eaux-de-vie; trademarks, and various production facilities, such as distillation units, warehouses, vineyards, a visitor centre and chateau, blending facilities, ageing cellars, and an automated bottling plant.
Bob Kunze-Concewitz, CEO of Campari Group, said: “We are very pleased to acquire a top-four historical cognac house, Courvoisier, with great latent equity and highly acclaimed expressions.
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.”
Campari remains committed to expanding its global presence. In November 2023, the Appleton Estate producer signed a Memorandum of Understanding (MOU) with Sichuan Yibin Wuliangye to form a strategic partnership.
The strategic cooperation in Yibin City, China, will enable the two spirits companies to collaborate in areas such as new product co-creation, channel expansion, strengthening marketing cooperation and promoting brand culture.
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