Milan, May 10th. 2022-Campari Group announced the signing and simultaneous closing of an agreement with Diageo to acquire the Picon brand and related assets.
Invented in 1837 by Gaétan Picon, Picon is a traditional, market-leading French bittersweet aperitif with a unique orange flavour. Made from a base of herbs and fresh oranges which are dried, it is currently available in two versions: Amer Picon Club, an orange-based liqueur with a bittersweet flavour to be mixed with wine and cocktails, and Amer Picon Bière, to be mixed with beer.
For the fiscal year ended on 30 June 2021, the brand achieved net sales of €21.5 million and CAAP of €12.9 million. The brand generates almost 80% of its sales in France, where it has a leading position in the bitter aperitif category, whilst the remaining sales are mostly generated in the Benelux markets. With the acquisition of Picon brand, Campari Group aims to further enlarge its brand offering in its core bitter aperitifs category in international markets and increase its critical mass in France and Benelux.
With specific reference to France, this transaction aims to reinforce the Group’s position in this strategic market, in line with other recent transactions including the acquisitions of French rums Trois Rivières and La Mauny (2019) as well as Champagne Lallier (2020). France became part of Campari Group’s direct distribution network following the acquisition of its local distributor Baron Philippe de Rothschild France Distribution S.A.S. in 2020. It is currently the Group’s 4th largest market, accounting for 5.9% of the Group’s net sales in full-year 2021.
The overall consideration paid is approx. €119m for the Picon brand and related assets. The transaction was funded via available cash.
John Kennedy, Diageo’s President, Europe, said: “As part of our commitment to delivering consistent, efficient growth and value creation for our shareholders, we maintain a sharp focus on active portfolio management. This includes a disciplined approach to allocating resources and capital to ensure we maximise returns over time. Whilst Picon has a strong heritage and loyal consumer base in France and Belgium, today’s announcement is another example of this strategy in action”.
The transaction will generate an exceptional gain on disposal of £64 million. There will be no material impact on EPS. As part of this transaction, Diageo has agreed a two-year supply agreement with Campari Group.
