I Network

The Drinks group C&C says it has bought the UK cider assets of Constellation Brands for £45 million (€50m).

According to InsideIreland, the purchase includes brands Blackthorn, Olde English and Gaymers, a production facility in Somerset England and a distribution warehouse in Bristol.

C&C Chairman, Tony O Brien said that the company will triple its sales after completing its acquisition of Constellation Brands for €50 million.

C&C Chairman, Tony O Brien said that the company will triple its sales after completing its acquisition of Constellation Brands for €50 million.

The deal will be financed by a new bank facility of £60 million (€67 million).

C&C says it expects the deal will be immediately earnings accretive, the purchase is expected to complete by January, following consultation with employees.

Gaymer’s total cider volumes for the year to February 2009 were around 1.5 million hectolitres, almost twice the size of Magner’s current UK volumes.

The business generated net sales of £64 million (€70.3m) and earnings of about £5.4 million (€5.9m) in the year ended 28 February, 2009.

The company adds that the deal gives it an established mainstream draught cider brand in Britain, and increases its off-trade business to better reflect the channel split of the overall UK cider category.

Tony O’ Brien, Chairman of C&C said:

“The acquisition enhances our product portfolio, creates operating synergies and delivers value for our shareholders.”

John Dunsmore, CEO of C&C Group, also stated that:

“This transaction strengthens our position within the world’s largest cider market and broadens the scope of the Group’s existing cider offering.”

C&C shares were up 9 cents to €2.67 in Dublin early this morning.