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Pernod Ricard to take over Vin & Sprit brandsPernod Ricard to take over Vin & Sprit brands
Andrew Pentol
3-Sep-2008
Maxxium shareholders agree early termination of Vin & Sprit distribution contract enabling Pernod Ricard to distribute the Absolut brand
Pernod Ricard has announced that Maxxium shareholders Vin & Sprit, Pernod Ricard, Rémy Cointreau, The Edrington Group and Beam Global Spirits and Wine have agreed an early end to the distribution of Vin and Sprit brands. The agreement, which includes Absolut vodka, will come into effect on October 1 2008. At present, Maxxium distributes the Vin and Sprit portfolio in key markets outside the US. The contracts had previously provided for an end to the distribution of Vin and Sprit brands after two years following its acquisition of Pernod Ricard on payment of a fee.
Under the terms of the deal, Pernod Ricard will pay Maxxium €59m ($85m) on October 1 and Vin and Sprit’s 25% stake in Maxxium will be redeemed by Maxxium for €60.4m ($87m) on March 30 2009. Pernod Ricard will immediately take over the distribution of Absolut in most non-US markets with no associated costs, and will implement cost synergies through an accelerated integration of Absolut with Pernod Ricard.
Pernod Ricard chairman Patrick Ricard said: “Following the deal to take over the distribution of Absolut, the exit from the Maxxium distribution agreement at the same time is excellent news for Pernod Ricard. Only two months after closing the acquisition of Vin and Sprit, the Absolut brand will be distributed in almost every market around the world by our powerful distribution network, accelerating the strong growth of the brand. Through its own dynamism and overall strengthening of our portfolio of premium and luxury brands, Absolut further improves our growth profile.”
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