C&C sells off drinks brands for €150m

THE drinks and snack food group C&C has sold two of its brands to the Italian spirits maker Campari for €150 million.

C&C will use the proceeds to pay down part of its €700m debt in advance of an expected flotation of the company, best known for Tayto crisps and Bulmers cider brands.

Yesterday it sold Barbero 1891, the C&C subsidiary which makes Aperol, Aperol Soda and Barbieri liqueurs. Barbero is based in Canale, Italy, and employs 120 people. The deal is worth a total of €220m, but the price tag includes Barbero’s 70m cash pile going to Campari.

C&C chief executive Maurice Pratt said Barbero was a successful business, but it was not core to the group’s future strategy or the development of its international business.

Barbero expects sales of €55m in the year to end-February 2004 with earnings before interest, tax, depreciation and amortisation (EBITDA) of €13m. Mr Pratt said the price paid for the business, which is nearly 12 times the EBITDA as “an excellent price”.

The sale does not include a sparkling wine brand, sold to Gancia Group, and the Italian liqueur, Frangelico, which remains within the C&C Group.

“Looking forward the group will comprise of a strong, cash-generating brand portfolio with leadership positions in domestic and international markets,” said Mr Pratt.

C&C pulled its flotation on the Dublin and London stock market in July 2002 as it was feared the bear market would not react favourable to a new issue.

The company is expected to pursue flotation next year if conditions are ideal.