European vodka maker Stock Spirits agrees to US$1Bn takeover by CVC-affiliated funds

UK – Vodka maker Stock Spirits Group has agreed to a takeover offer valuing it at £767 million ($1.06 billion) from CVC Capital Partners-affiliated funds. 

Stock Spirits is a leading alcohol company in central and eastern Europe, where it sells its 1906, Stock Prestige and Vodka No.1. 

The company has production facilities in Poland, the Czech Republic, Germany, and Italy – aligning with its core markets Poland, Czech Republic, and Italy, which account for 90 percent of its sales. 

The London-listed Stock Spirits has a portfolio of more than 70 brands across a range of spirits and is said to focus on premiumization and brands and products that appeal to younger adults and women. 

According to a statement from the company, the takeover offer of £3.77 per Stock Spirits share represents a premium of 41% to the stock’s closing price yesterday. 

Stock Spirits chairman David Maloney said that the company’s directors believe the proposal “represents compelling value for Stock Spirits shareholders”. 

He added: “We believe that CVC’s support for our existing strategy and the investment that it intends to make in order to grow our business means that this offer will benefit all of Stock Spirits’ stakeholders.” 

CVC’s acquisition of the vodka maker is timely as the global premium spirit market size which was valued at US$107.74 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% from 2020 to 2027, according to Grand View Research. 

According to the market research firm, the growing popularity of high-end drinks among the millennial population has been fueling market growth across the world.   

CVC managing partner, István Szőke, added: “Stock Spirits is a high-quality business with strong brands, established market positions and significant growth potential and we are delighted that our proposal has been recommended by the Stock Spirits directors”. 

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The future development of Stock Spirits will be best served as a private business, operating with a leaner central overhead, with rapid access to capital and with the benefits of a longer-term investment approach,” CVC Funds’ Bidco investment arm added. 

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