Fortune Brands completes major spirits and wine acquisition

27/07/05 Fortune Brands, Inc. has completed the transaction for the acquisition of more than 20 spirits and wine brands that will elevate the level of its portfolio, expand its international strength and make it a new global leader in premium spirits and wine. The brands and related assets are being acquired from Pernod Ricard following Pernod Ricard's acquisition of Allied Domecq.

Fortune Brands is acquiring some of the premier growth brands in the world, including Sauza tequila, Courvoisier cognac, Canadian Club whisky, Laphroaig single-malt Scotch and Clos du Bois wines. The company is also acquiring leading national brands in the U.K., Spain and Germany, Allied Domecq's distribution operations in those markets and for California wine, Pernod Ricard's Larios brand, and production facilities related to the brands.
 
The new brands will more than double revenue for the company's spirits and wine business and place it among the top four spirits companies in the world. The company will also be among the top five companies in super-premium U.S. wines. While there will be a transitional period not to exceed six months during which the assets will be transferred to Fortune Brands, the company will manage the brands and assets - and receive the profits and cash flows - as of the closing.
 
Among the premium global growth brands and leading national brands included in the acquisition are:
 
Sauza, the fast-growing #2 tequila in the world 
Courvoisier, one of the world's leading cognacs 
Canadian Club, the #2 Canadian whisky in the world 
Clos du Bois, the #2 U.S. super-premium wine brand, and other super-premium Sonoma and Napa wine brands 
Laphroaig, the #1 Islay malt whisky in the world 
Teacher's, the #3 Scotch whisky in the U.K. 
Cockburn's, the #1 port brand in the U.K. 
Harveys, a leading brand of sherries in the U.K. 
Larios, the #1 gin brand in Spain and #5 in the world 
DYC, the #3 whisky brand in Spain 
Fundador, Spain's #1 export brandy 
Centenario, the #1 brandy in Spain
Kuemmerling, the #3 bitters brand in Germany.
Fortune Brands' agreement with Pernod Ricard also includes the purchase of the Maker's Mark bourbon brand, which remains subject to regulatory clearance in the United States. While the U.S. Federal Trade Commission conducts its review, Maker's Mark will be owned and managed by Pernod Ricard and Pernod Ricard will receive the earnings on the brand. Fortune Brands will be compensated with interest payments pending transfer of the brand.

Fortune Brands, Inc. is a $7 billion leading consumer brands company. Its operating companies have premier brands and leading market positions in home and hardware products, spirits and wine, golf equipment and office products. Home and hardware brands include Moen faucets, Aristokraft, Schrock, Diamond and Omega cabinets, Therma-Tru door systems, Master Lock padlocks and Waterloo tool storage sold by units of Fortune Brands Home & Hardware, Inc. Jim Beam Brands Worldwide, Inc. is the company's spirits and wine business. Major spirits and wine brands include Jim Beam and Knob Creek bourbons, Sauza tequila, Canadian Club whisky, Courvoisier cognac, DeKuyper cordials, Starbucks™ Coffee Liqueur, Laphroaig single malt Scotch, Vox vodka and Clos du Bois and Geyser Peak wines. Acushnet Company's golf brands include Titleist, Cobra and FootJoy. Office brands include Swingline, Wilson Jones, Kensington and Day-Timer sold by units of ACCO World Corporation. Fortune Brands, headquartered in Lincolnshire, Illinois, is traded on the New York Stock Exchange under the ticker symbol FO and is included in the S&P 500 Index and the MSCI World Index.

http://www.fortunebrands.com/news/ReleaseDetail.cfm?ReleaseID=169595&ReleaseType=Corporate