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With the sale of Wild Turkey to Campari for a transaction value of
US$ 575 million, Pernod Ricard has now completed nearly 60% of its € 1
billion non strategic assets disposal plan announced in July 2008
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Intention to raise € 1 billion in equity capital by way of a rights
issue, which will both strengthen the capital structure and address
the major part of refinancing needs until July 2013
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Confirmed guidance of double-digit growth in Group net profit from
recurring operations over the full 2008/09 fiscal year (at least € 1
billion)
Regulatory News:
The Wild Turkey disposal
Pernod Ricard (Paris:RI) announces that it has signed a definitive
agreement to sell its Wild Turkey American straight bourbon and related
businesses to Gruppo Campari for a total purchase price of US$ 575
million to be paid in cash, or € 433 million at current exchange rate,
representing approximately 10 times the brand’s historic contribution
after advertising and promotion.
The transaction includes the Wild Turkey brands, along with American
Honey liqueur, distillery facilities in Kentucky and related assets,
together with aged bulk bourbon inventory. It also provides that Pernod
Ricard will continue to distribute the Wild Turkey brands in Australia
and New Zealand, for a transitory period, and in Japan, the second
largest non-US market, pursuant to distribution agreements with Campari.
The transaction is subject to antitrust approvals and is expected to
close in the second quarter. BNP Paribas and J.P. Morgan acted as
financial advisors to Pernod Ricard and Debevoise & Plimpton LLP acted
as legal advisor.
The sale of Wild Turkey is an important part of the € 1 billion disposal
plan of non strategic assets communicated after the Vin & Sprit
acquisition. With the disposals of Glendronach, Cruzan, Bisquit, as well
as of the Serkova and Vin & Sprit brands sold at the request of the
competition authorities, the overall disposal gross proceeds reach
approximately € 577 million as of today. The Group confirms its
intention to complete this plan within 12 months.
Not for distribution in Australia, Canada and in Japan
On the back of steady progress on its disposal plan, Pernod Ricard
announces its intention to raise approximately € 1 billion in equity
capital by way of a rights issue
As authorized by the tenth resolution voted at the November 7th, 2007
annual general meeting of shareholders, Pernod Ricard today announces
its intention to raise € 1 billion in equity capital by way of a rights
issue (“augmentation de capital avec maintien du droit préférentiel
de souscription”) in order to enable existing shareholders to
support the Group and preserve their interests. Proceeds will be used to
pay down debt.
The proceeds from the rights issue and the completion of the
well-advanced non strategic assets disposal plan will allow the Group to
strengthen its balance sheet and address the major part of its
refinancing needs until July 2013. Besides, the rights issue will allow
for quicker decrease of the Group’s Net Debt /EBITDA ratio which will
further reduce the syndicated loan margins.
Société Anonyme Paul Ricard and its subsidiary Lirix have confirmed
their support to the rights issue and will subscribe through a
cash-neutral transaction (“opération blanche”).
Groupe Bruxelles Lambert has also signaled its confidence in the Group’s
outlook by indicating its intention to fully subscribe to its pro rata
share of the rights issue.
A group of banks is currently advising Pernod Ricard in connection with
the rights issue, which it intends to launch as soon as possible,
subject to both market conditions and agreement on final terms by the
Board of Directors.
