South African drinks company Distell today entered into a definitive agreement to sell its Cognac business, Bisquit Dubouche et Cie (Bisquit), to Campari Group for €52.5 million. The deal is expected to close during the first quarter of 2018.
Campari, one of the world’s largest spirit groups, will acquire all the shares in Bisquit, plus existing stock, maturing inventory and the trademarks. It also gains production facilities comprising warehouses, blending cellars and a bottling plant.
The brand offering includes Bisquit V.S. Classique, Bisquit V.S.O.P., Bisquit Prestige and Bisquit X.O. together with rare collections and limited editions.
Bisquit’s key markets include South Africa, Belgium and Switzerland.
Distell Managing Director Richard Rushton said the Bisquit brand remained strong and well positioned for long-term growth. “Distell’s decision to sell the business is driven by our strategic intent to focus on a core portfolio of categories, brands and assets that support the company’s growth ambitions,” he commented.
“The sale will ensure the assets within our portfolio align with our strategy and generate long-term shareholder value. The disposal of Bisquit will allow us to focus our efforts on accelerating our growth in key product categories and markets where we believe we can deliver more attractive returns and deliver on our growth aspirations,” said Rushton.
Distell is Africa’s leading producer of spirits, wines, ciders and ready-to-drinks. The company is the world’s second-biggest producer of ciders, the sixth-biggest producer of brandies and the 12th biggest producer of wines.