Campari places €1.2bn worth of shares and bonds on the market
Italian alcoholic beverage company Campari has placed securities on the Milan Stock Exchange. A total of €1.2 billion worth of shares and bonds were issued. The purpose of the sale is to raise funds for the acquisition of Courvoisier.
Campari opted for an accelerated tender offer to finance the deal with the French cognac company. It priced the shares at €9.33 each. However, the closing price on the stock exchange was higher at €9.93 per share.
There was also a private placement of unsecured convertible bonds. The bonds mature in 2029. The total volume was approximately €550 million at an initial conversion price of €12.3. This resulted in a premium of 32.5% over the underlying value.
Company overview
Campari is a group of companies producing wines, spirits and non-alcoholic aperitifs. The brand has been around since 1860 when Gaspar Campari created a recipe for an aperitif in Milan. The drink was named in his honour and is still the company’s signature.
Campari is the sixth-largest alcohol producer in the world. The group owns more than 50 brands, including:
– Aperol;
– Cinzano;
– Wild Turkey;
– SKYY;
– Grand Marnier.
The company operates in more than 190 countries and has 22 factories around the world. The brand sells and markets through its own distribution network, which extends to all continents.
Until the 1990s, the business focused on a few products and was considered niche. However, scaling up and expanding the product range began as sales increased. The first company to join Campari was BolsWessanen in 1995. Three years later, the group acquired the Skyy Spirits brand.
In 2001, the company floated on the Italian stock exchange, the largest on the local market.
In 2005, the company added the Aperol, Barbieri and Mondoro brands to its portfolio. At the same time, Campari bought the famous Teruzzi & Puthod winery in Tuscany. Other wine producers were gradually added to the portfolio, as well as the Scottish whisky Glen Grant.
The company entered the tequila market by adding the Cabo Wabo brand in 2007. The frontman of the American rock band Van Halen previously owned this production.
Campari continues to expand its presence in the global market actively. It offers medium to premium products in the wine and spirits segment.
