C&C to buy UK cider maker Gaymer

Bulmers maker C&C is to buy UK cider company Gaymer for £45m (€50m), it was announced this morning.

In a statement the Clonmel-based drinks company said it had "agreed to acquire the UK cider assets of Constellation Brands, The Gaymer Cider Company for a cash consideration of £45m."

New York-based Constellation Brands is the leading producer of premium wines in the world.

The transaction will be financed by a new bank facility of £60m (€67m) and is expected to be completed by mid-January.

The Gaymer Cider Company brand portfolio includes the brands Blackthorn, Olde English and Gaymers, while the company has a production facility in Somerset and a distribution warehouse in Bristol.

It employs approximately 250 people in England and generated net sales of £64m (€70m) and EBITDA of approximately £5.4m (€5.9m) in the year ended February 28, 2009.

C&C said it believed the transaction was "strategically and financially attractive" and would serve to strengthen its UK cider business.

"The acquisition of The Gaymer Cider Company provides us with established and well invested brands," said CEO John Dunsmore.

"The acquisition enhances our product portfolio, creates operating synergies and delivers value for our shareholders.”