Pernod Ricard Reduces Debt with Disposal of Tia Maria for € 125 millionJuly 27, 2009
Pernod Ricard announces the disposal of Tia Maria coffee liqueur to Illva Saronno for a cash consideration of € 125 million on a cash free / debt free basis. The transaction signed and the cash consideration was paid simultaneously on July 27, 2009.
The sale of Tia Maria together with other disposals completed since the acquisition of Vin & Sprit in July 2008 enables Pernod Ricard to continue its debt reduction program having achieved disposals totalling in excess of € 700 million.
As part of the transaction:
- Chivas Brothers Limited has been appointed to produce Tia Maria for Illva Saronno,
- arrangements have been made for short term transitional distribution services to be provided by Pernod Ricard affiliates
- some longer term distribution agreements will be entered into in certain markets
- Pernod Ricard Argentina has been appointed to produce and distribute the brand in Argentina.
Pernod Ricard was advised in this transaction by Deutsche Bank, Rabobank, and by Macfarlanes solicitors.
I.L.L.V.A. Saronno Holding S.p.A. (“ILLVA”), wholly owned by the Reina family, is one of the European leaders on the spirits and wine markets. In particular, the Group manufactures and markets in more than 150 countries the world’s best selling Italian liqueur: Disaronno Originale (http://www.disaronno.com/). Other brands marketed by the group include Rabarbaro Zucca, Amaro 18, Artic Vodka (in the spirits sector) and Vini Corvo, Cantine Florio, Duca di Salaparuta (in the wine sector).