Gruppo Campari has announced today the sale of Carolans and Irish Mist to Heaven Hill Brands for $165m (£126.6m).
The sold business consists of the Carolans Irish Cream and Irish Mist (Irish Mist Liqueur and Irish Mist Whiskey) trademarks, as well as inventory and production assets.
Gruppo Campari and Heaven Hill Brands will enter into a multi-year exclusive distribution agreement, under which Gruppo Campari will continue to distribute the Carolans and Irish Mist brands in the international markets outside the United States.
The closing date of the transaction is expected to be 1 August 2017.
'The sale of Carolans and Irish Mist is the largest disposal ever completed by the Group,' said Bob Kunze-Concewitz, chief executive officer of Gruppo Campari. 'We are very pleased to sign this transaction with Heaven Hill, a prominent spirits company in the US and a perfect fit for Carolans and Irish Mist.
'With this transaction, we continue to streamline our non-strategic portfolio and further increase our focus on our priority spirit brands, particularly in our largest and core US market. Moreover, thanks to this disposal, we can further accelerate in the reduction of our financial indebtedness. Since the beginning of 2016 we have divested non-strategic assets for a total value of approximately €260m.'
'We are delighted to have worked with Gruppo Campari on this acquisition,' added Max L. Shapira, president of Heaven Hill Brands. 'Carolans and Irish Mist are great historic brands that are highly complementary to our broad portfolio of leading brands. We look forward to building on the strong success these brands have achieved both in the US and around the world.'