C&C buys drinks distributor Gleeson

C&C Group has acquired the Gleeson Group, the country’s leading drinks distributor, in a deal valued at €58 million — a move C&C claims has the potential to “transform” its Irish business.

The deal will see the Dublin-headquartered C&C — known, primarily, for its twin cider brands of Bulmers and Magners — pay €12.4m, in cash, for Gleeson; €4.4m of which will be deferred for one year. But Gleeson’s existing debt levels, of €45.6m, boosts the implied value of the deal to €58m.

Last month, C&C reached agreement to purchase the Vermont Hard Cider Company in the US for €233m. That deal — which gives the Irish group ownership of the US’s two biggest cider producers — coupled with the Gleeson purchase, gives C&C a net debt less than 1.5 times its earnings before interest, taxes, depreciation, and amortisation (EBITDA).