Pernod Ricard Eyes Ready-To-Drink Growth as It Buys Canada's ABG

   By Joshua Kirby 
 

Pernod Ricard said Tuesday that it reached a deal to buy a Canadian producer of canned drinks, as it looks to increase its exposure to the rapidly-growing market in ready-to-drink, or RTD.

The French distiller will take a 90% stake in Ace Beverage Group, or ABG, which produces the Cottage Springs line of ready-to-drink cocktails and mixed drinks, including vodka water and tequila soda.

The acquisition via Pernod Ricard's majority-owned Canadian subsidiary Corby Spirit and Wine gives ABG an enterprise value of 165 million Canadian dollars ($123.4 million), Pernod Ricard said.

The group, which also makes RTD products at its brands including Malibu coconut rum and Jameson whiskey, has the option to reach 100% ownership in ABG via two call options excercisable in 2025 and 2028, it said.

The acquisition will boost Pernod Ricard's RTD business, said Fredrik Syren, the group's director of RTDs and convenience.

"With ABG, Corby becomes a key player in the Canadian RTD market, giving the scale and synergies needed in this category," Syren said.

The deal will also allow ABG to access Corby's distribution networks across Canada, Pernod Ricard said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

June 13, 2023 03:04 ET (07:04 GMT)

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