C&C unlikely to bid for €330m Glenmorangie

C&C is unlikely to make a play for Scottish whisky maker Glenmorangie which has come on the market with a stg£220m plus (€330m) price tag.

Sources close to C&C indicated yesterday the Irish company will not bid for the Scottish distiller despite the potential synergies and distribution expansion for its Irish whisky brand Tullamore Dew such an acquisition would give C&C.

NCB analyst Paul Meade said: "While this niche specialist whisky maker would make an ideal fit for the C&C Group, a bid is unlikely at this time given C&C's plans to utilise cash to de-leverage."

Glenmorangie, the world's sixth- biggest whisky maker, is in talks with possible buyers after putting itself up for sale.

The shares rose to a record price on the news, up 20% yesterday. Investors controlling a majority of the company told management they aimed to sell their stake, prompting Glenmorangie to solicit offers.

The whiskey maker, whose main distillery is in northern Scotland next to the Dornoch Firth, relies on single malts for three-quarters of sales. The 300-year-old company has distribution agreements with Brown-Forman, maker of Jack Daniel's and owner of 25% of Glenmorangie's non-voting shares.

The company said in May, profits in the six months to March 31 rose 3.4% to stg£3.62m. Revenue rose 8.9% to stg£37m.

Glenmorangie sells 2 million cases of whiskey, including Ardbeg and Glen Moray, a year, to more than 120 countries. Glenmorangie also has distribution accords with Bacardi, which owns Dewar's Scotch whisky, and Drambuie Liqueur.

Bacardi and Brown-Forman are favourites to buy Glenmorangie, the Herald newspaper in Glasgow reported yesterday.

The distiller did not identify which companies it was in talks with. Ed Welsh, a director at NM Rothschild & Sons, which is advising Glenmorangie, said he couldn't comment on possible acquirers.

Additional reporting Bloomberg.