Corby Spirit and Wine Limited (TSX:CSW.A) completed the acquisition of a 90% stake in Ace Beverage Group Inc.
July 03, 2023
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Corby Spirit and Wine Limited (TSX:CSW.A) entered into a definitive agreement to acquire a 90% stake in Ace Beverage Group Inc. for approximately CAD 150 million on June 12, 2023. The transaction will be funded with combination of cash on hand and a CAD 120 million of financing secured from Pernod Ricard. Post completion, Corby Spirit and Wine Limited will hold 90% stake and the remaining 10% mainly held by certain Ace founders. Corby has a path to 100% ownership of Ace through a series of two call options on the remaining shares, exercisable in 2025 and 2028. The transaction was approved by Corby's board of directors and is subject to to regulatory and third party approvals. The transaction is expected to close in FQ1 2024. The transaction is expected to increase Corby's operating revenue by approximately 35% and to be accretive on Corby's operating margin. National Bank Financial, Inc. acted as financial advisor to Corby. McCarthy Tétrault LLP acted as legal advisor to Corby. National Bank Financial, Inc. acted as fairness opinion provider to Corby. Goodmans LLP acted as legal advisor to Ace Beverage. Stifel Nicolaus Canada Inc. acted as financial advisor to Ace Beverage. Nomura International Plc acted as financial advisor to Pernod Ricard.
Corby Spirit and Wine Limited (TSX:CSW.A) completed the acquisition of a 90% stake in Ace Beverage Group Inc. on July 4, 2023.
Corby Spirit and Wine Limited is a Canadian company, which is a manufacturer, marketer, and distributor of spirits, wines and ready-to-drink beverages. The Company operates through two segments: Case Goods and Commissions. The Case Goods segment includes the production and distribution of its owned beverage alcohol brands. The Commissions segment includes non-owned beverage alcohol brands in Canada. Its portfolio of owned brands includes J.P. Wiser's, Lot 40, and Pike Creek Canadian whiskies, Lamb's rum, Polar Ice vodka and McGuinness liqueurs, as well as the Ungava gin, Cabot Trail maple-based liqueurs and Chic Choc spiced rum, and Foreign Affair wines. It represents international brands, such as ABSOLUT vodka, Chivas Regal, The Glenlivet and Ballantine's Scotch whiskies, Jameson Irish whiskey, Beefeater gin, Malibu rum, Kahlua liqueur, Mumm champagne, and Jacob's Creek, Wyndham Estate, Stoneleigh, Campo Viejo, Kenwood wines, and Nude.
