Emperador Inc. has sealed a 275-million euro deal to acquire Beam Suntory’s Spanish brandy and sherry business, including the Fundador brand, in line with an international expansion bid.
The deal, equivalent to P13.8 billion, was done through unit Grupo Emperador Spain S.A. Emperador told the Philippine Stock Exchange that the acquisition was in line with its goal to become the world’s number one brandy company.
“The acquisition of the Spanish assets and Fundador Brandy is immediately accretive both to Emperador’s revenue and net income. With the combined global reach of Whyte & Mackay and Fundador, our expanded product portfolio will have access to more than 100 countries around the world,” said Winston Co, Emperador president.
“In our pipeline are several proudly Philippine-made products that we intend to introduce
to the international markets starting next year,” he added.
It was the third international buyout effort of Emperador following a P31-billion takeover of Whyte & Mackay Group Limited and its subsidiaries last year and a failed bid to acquire France-based cognac maker Louis Royer SAS.
In 2013, the company also acquired a 500-hectare vineyard in Toledo, Spain for P5.8 billion.
Under the deal with Beam Suntory, Emperador will take over the following brands: Fundador Pedro Domecq, the Philippines’ largest selling premium imported brandy; Terry Centenario, said to be Spain’s best-selling brandy; Tres Cepas, Equatorial Guinea’s best-selling brandy; and Harveys, the United Kingdom’s best-selling sherry wine.
Other acquired assets include Bodegas Fundador, Spain’s largest and oldest brandy cellars that were established in 1730, as well as production facilities, ageing cellars, vineyards and the newest blending and bottling facilities in Jerez, Spain.
Also included is a distillery in Tomelloso, Spain with an inventory of brandy and sherry that Emperador officials believe will drive the company’s future growth.
The acquisition was facilitated by Nomura, which was the sole financial advisor, and Allen & Overy as legal advisor.
The acquisition was in line with Emperador’s stated aim to grow overseas and double its net income to P12 billion by 2017 from P5.8 billion in recorded in 2013.
In the first nine months of 2015, Emperador’s net income inched up by 3 percent to P4.7 billion, boosted by revenues from foreign operations.
Emperador is 87.55-percent owned by Andrew Tan-led Alliance Global Group, Inc., which also has interests in property development (Megaworld Corp.); quick-service restaurants via the McDonald’s franchise (Golden Arches Development Corp.) and integrated tourism development businesses via Resorts World Manila and Resorts World Bayshore (Travellers International Hotel Group Inc.).