PH liquor major Emperador buys Fundador brandy from Beam Suntory for $291m

Brand visual from the company website

A unit of Philippine liquor giant Emperador Inc has acquired Spain’s largest and oldest brandy brand Fundador from Beam Suntory Inc including its sheer business for $291 million (EUR275 million).

Emperador disclosed its company Grupo Emperador Spain SA has reached a definitive agreement with Beam Suntory for the acquisition in Jerez de la Frontera, the brandy capital of Spain.

Emperador president Winston Co said, the latest acquisition will further strengthen Emperador’s position as the number one brandy company in the Philippines and in the world.

“The purchase of the Spanish assets and Fundador Brandy is immediately accretive to Emperador’s revenue and net income,” Co said. “With the combined global reach of Whyte and Mackay and Fundador, our expanded product portfolio will have access to more than 100 countries internationally. In our pipeline are several proudly Philippines-made products that we intend to introduce to the international markets starting next year.”

Also read: GIC invests $391m to buy 9.64% in Emperador

The purchase includes the iconic brands of Fundador, the Philippines’ best-selling premium imported brandy; Terry Centenario, Spain’s number one selling brandy; Tres Cepas, the number one brandy in Equatorial Guinea and Harveys, the number one selling sherry wine in the United Kingdom. All the brands carry a unique heritage and market leading position. Fundador Brandy has been a true Filipino icon for more than 150 years.

The purchased assets, meanwhile, include Spain’s largest and oldest brandy cellars, Bodegas Fundador, which was established in the year 1730 and production facilities, ageing cellars, vineyards and state of the art blending and bottling facilities in Jerez. The assets also include a brandy distillery at Tomelloso as well as sufficient ageing inventory of brandy and sherry to drive future growth.

Emperador Inc was assisted in this asset purchase by Nomura (sole financial advisor), Allen & Overy (legal advisor) and KPMG (accounting advisor).

Also read: PH liquor giant Emperador to pay off debt, expand to EU & Africa

In November last year, Singapore’s sovereign wealth fund GIC Private Ltd bought almost a 10 per cent stake in Emperador for P17.6 billion pesos ($391 million), its third direct investment in the Philippines in 2014.

Emperador generated 45 per cent more in revenues from January to September 2015 compared to the same period of 2014. Its consolidated revenues this year amounted to P29 billion, inclusive of foreign operations. Net income reached P4.7 billion this year, up about 3 per cent year-on-year.

Emperador’s last trading price inreased 1.42 per cent or 0.130 to close at P9.28.

Also read:

Philippines: Century Pacific Food buys out coconut products firm CPAVI for $209.9m

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.