Gruppo Campari: Sale of the Agri-Chemicals Division in Jamaica
30 Dec 2014 --- Gruppo Campari announced the signing of an agreement for the sale of the Agri-Chemicals Division of J. Wray & Nephew Limited (a fully owned subsidiary of Davide Campari-Milano S.p.A.) in Jamaica to Caribbean Chemicals and Agencies Limited.
The deal consideration is USD 8.2 million (€ 6.7 million at the current exchange rate) on a cash free / debt free basis. The deal structure foresees various post-closing price adjustments relating to stock and other assets and liabilities.
The closing of the deal is expected by March 2015.
Agri-Chemicals division of J. Wray & Nephew Limited entered Gruppo Campari’s business in 2012 within the acquisition of Lascelles deMercado & Co. Limited, consisting of a strong portfolio of world-class premium and overproof rums led by Appleton Estate and some non-core local operations.
The transaction underlines the Gruppo Campari strategy of strengthening its focus on its core high-margin spirits business via streamlining of non-core businesses. It should be noted that on November 12, 2014 Gruppo Campari already announced that it will exit the consumer agency brand business within the merchandise business in Jamaica during the first quarter 2015. Moreover, on December 22, 2014 Gruppo Campari announced the sale of the Federated Pharmaceutical division of J. Wray & Nephew Limited to Kirk Distributors Limited in Jamaica for a consideration of USD 14.4 million (€ 11.8 million at the exchange rate on the deal announcement date) on a cash free / debt free basis, as well as the sale of the Limoncetta di Sorrento business to Lucano 1894 S.r.l. in Italy for a consideration of € 7 million on a cash free / debt free basis.
