Emperador buys Fundador, other Beam Suntory brands for P13.8B

Published December 1, 2015 10:25am

(Updated 11:21 a.m.) Grupo Emperador Spain S.A. has bought Beam Suntory's brandy and sherry business in Jerez for P13.8 billion in cash.

The company owned by Andrew Tan's Emperador Inc. on Tuesday said "... the acquisition includes the iconic brands of Fundador Pedro Domecq, Terry Centenario, Tres Cepas, and Harveys.

"These brands carry a unique heritage and market leadership position in their respective categories," according to Emperador.

Fundador is the largest and oldest brandy in Spain and has been an icon of Spanish culture and heritage, the company also said, claiming "... it has also been an iconic premium liquor brand in the Philippines for more than 150 years."

The assets included in the acquisition were Bodegas Fundador – Spain's largest and oldest brandy cellars established in 1730 – as well as production facilities, ageing cellars, vineyards and state-of-the-art blending and bottling facilities, in Jerez, Spain.

Other assets also include a brandy distillery in Tomelloso, Spain with sufficient ageing inventory of brandy and sherry, which Emperador officials claimed will drive the company’s future growth.

"The all cash offer has been agreed at a value of €275 million or P13.8 billion," Emperador noted.

In a separate text message to GMA News Online, a company source noted it has enough cash to cover the acquisition.

"The company is in a strong financial position," the source said, asking not to be named.

"The acquisition of the Spanish assets and Fundador Brandy is immediately accretive both to Emperador’s revenue and net income," Winston Co, Emperador's president, said in an emailed statement.

"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. In our pipeline are several proudly Philippine-made products that we intend to introduce to the international markets starting next year," Co added.

Emperador hired Nomura as sole financial advisor and Allen & Overy as legal advisor for the transaction.

Last year, Emperador completed the acquisition of UK-based Scotch whiskey maker Whyte & Mackay Group Limited and its subsidiaries for P31 billion. – VS, GMA News

Tags: mergersandacquisitions, emperadorinc, beamsuntory, fundador