Italian beverage giant Campari
continued to expand its line of popular products with the
announcement Tuesday of the purchase of 100% of Fratelli Averna
SpA, an iconic maker of after-dinner drinks.
The price tag for the Sicily-based distiller was 103.75
million euros, with 98 million euros paid immediately, the
companies said.
Averna, founded 150 years ago, produces the popular
household 'amaro' liqueur, and with the acquisition, Campari
also adds Fratelli Averna's other after-dinner drinks to its
holdings, including the herb-based bitters Braulio, Limoncetta
and Frattina.
As well, Campari - best-known for its signature red
aperitif - gains Averna, the second best-selling liquer in
Italy.
The company's limoncello is especially popular, made with
the peel of high-grade lemons from Italy's popular Sorrento
area, as is the Grappa Frattina of Pordenone.
Bob Kunze-Concewitz, chief executive officer of Campari,
emphasized the role of brand-name recognition in the industry in
a statement on the Fratelli Averna deal.
"Adding a portfolio of brands with high quality, high
margin and strong cash generation capability, this acquisition
represents a great opportunity for us to leverage our
international route-to-market for profitable growth, in line
with our acquisition strategy," he said of the purchase, which
is expected to close in June.
That includes expanding in Germany and other parts of
central Europe as well as in North America, where Campari sees
growth potential from interest in mixed drinks including Italian
bitters and liqueurs.
In a statement, the Averna family said it was confident the
deal will help to ensure the authenticity of its made-in-Italy
brands.
"Today we pass the leadership of our business to Gruppo
Campari, who has very deep roots in Italian traditions and
values in the beverage sector with more than 150 years history,"
the family said.
"We are confident that Gruppo Campari will efficiently
develop the business that has been managed by five generations
of our family, who first of all associated its name with the
iconic bitter product, and developed other high quality products
as well".
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