September 03, 2008 01:39 ET
PERNOD RICARD: Agreement between Maxxium shareholders for a termination of the distribution contract for Vin & Sprit brands
PARIS--(Marketwire - September 3, 2008) - Agreement between Maxxium shareholders for an early
termination of the distribution contract for Vin & Sprit brands with effect
from October 1st 2008.
Integration of Vin & Sprit portfolio, including ABSOLUT, into Pernod
Ricard's distribution network on this same date.
Press release - Paris, 3 September 2008 - Pernod Ricard is pleased to
announce that the four shareholders of Maxxium (Vin & Sprit / Pernod
Ricard, Remy Cointreau, The Edrington Group and Beam Global Spirits & Wine)
have entered into an agreement for the early termination of distribution by
Maxxium of the Vin & Sprit brands, and in particular Absolut vodka. This
termination will take effect on 1st October 2008.
Maxxium currently distributes the Vin & Sprit portfolio in most major
markets outside of the US. The Maxxium contracts had previously provided
for an exit by Vin & Sprit from distribution after a period of two years
following its acquisition by Pernod Ricard together with the payment of a
fee.
The Maxxium shareholders have now agreed an accelerated exit of Vin & Sprit
from Maxxium. In order to compensate Maxxium for this early termination,
Pernod Ricard will pay Maxxium a fee of EUR 59 million on 1st October 2008.
The 25% equity stake held by Vin & Sprit in Maxxium will be redeemed by
Maxxium for EUR 60.4 million on 30th March 2009.
This transaction allows Pernod Ricard to take over the distribution of
ABSOLUT in most markets outside the US immediately and with no associated
costs. This will enable Pernod Ricard to implement cost synergies sooner
than originally expected and thereby leverage the portfolio synergies in
these markets through an accelerated integration of ABSOLUT within Pernod
Ricard.
Commenting on this agreement, Patrick Ricard stated :
"Following the agreement to take over the distribution of ABSOLUT in the US
on October 1st 2008, 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 & 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. "
Patrick Ricard also stated:
"Through its own dynamism and the overall strengthening of our portfolio of
premium and luxury brands, ABSOLUT further improves our growth profile."
About Pernod Ricard
Created by the merger between Pernod and Ricard (1975), the Group has
undergone sustained development, based on both organic growth and
acquisitions. The purchase of part of Seagram (2001), the acquisitions of
Allied Domecq (2005) and recently of Vin & Sprit (2008) have made Pernod
Ricard the world's co-leader in wines and spirits with sales of EUR 6,589
billion in 2007/08.
Pernod Ricard holds one of the most prestigious brand portfolios in the
sector: ABSOLUT Premium Vodka, Ricard pastis, Ballantine's, Chivas Regal
and The Glenlivet Scotches whiskies, Jameson's Irish Whiskey, Martell
cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm
and Perrier-Jouët champagnes, as well Jacob's Creek and Montana wines.
The Group favours a decentralised organisation, with comprise of 7 Brand
Owners and 70 Distribution Companies established in each key market, and
employs a workforce of more than 19,300.
In addition, Pernod Ricard is strongly committed to a sustainable
development policy and encourages responsible consumption.
Pernod Ricard is listed on the NYSE Euronext exchange (Mnemo RI ; ISIN code
FR0000120693) and is a member of the CAC 40 index.
For more information and to download images, visit our web site at
www.pernod-ricard.com
Pernod Ricard Contacts:
Francisco de la VEGA / Communication VP
Tel: +33 (0)1 41 00 40 96
Denis FIEVET/ Financial Communication - Investor Relations VP
Tel: +33 (0)1 41 00 41 71
Florence TARON / Press Relations Manager
Tel: +33 (0)1 41 00 40 88
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