Campari takes full control of Skyy Spirits – 02/11/06
Source: ©The Moodie Report
By Michael Fryer
Skyy Vodka – a 'Hot Brand'
ITALY. Davide Campari-Milano SpA has taken full control of Skyy Spirits, a US subsidiary of the Campari Group since 2002, after acquiring the remaining 11% in the company.
The transaction – valued at US$62 million – was in line with a contract agreed between the two parties in January 2002 allowing the stake, held by the Skyy Spirits management team, to be bought before a 2007 deadline.
Campari Group Chief Executive Officer Enzo Visone stated: “The increase of the Campari Group’s stake in Skyy Spirits to 100% reflects our strong commitment to further strengthening the group’s presence in the US, a crucial market in our international expansion strategy.”
Settled in cash, the price was determined on the basis of the average pre-tax profit achieved in the last five years and corresponds to less than ten times the pre-tax profit achieved by San Francisco-based Skyy Spirits in 2005.
Skyy Spirits is the owner of the Skyy brand, which since becoming part of the Campari Group has grown at a compound annual growth rate of 14%, selling approximately 2.4 million nine-litre cases in 2005.
In 2006, Skyy Vodka won its 11th consecutive Hot Brand award from leading spirits industry publication Impact
. Skyy flavours and Skyy 90 complete the product range.
Skyy Spirits is also the US distributor of Campari Group brands, including Campari, Cinzano, Ouzo 12 and Old Smuggler Blended Scotch Whisky, as well as a number of major third-party brands – notably 1800 Tequila, Cutty Sark Blended Scotch Whisky, Ron Matusalem, Martin Miller’s Gins, Carolans Irish Cream, Tullamore Dew Irish Whiskey, Irish Mist Liqueur and Midori Melon Liqueur.
MORE STORIES ON THE CAMPARI GROUP
Campari buoyed by acquisitions, distribution and duty free – 11/09/06
Campari Group's 2005 profits and sales soar – 25/04/06
Campari International expands travel retail team – 03/04/06
Pernod Ricard finalises whisky brands sale to Campari – 16/03/06