Drinks group C&C said today it would buy the Gaymer Cider Company for £45 million (€50 million).
The Gaymer Cider Company, which is owned by US-based Constellation Brands, has a portfolio of brands that includes Blackthorn, Olde English and Gaymers. It also produces value cider brands and "own label" production for UK grocers.
Under the deal, C&C will buy the brands, a cider production facility in Somerset, and a distribution warehouse in Bristol. The transaction will be financed by a new bank facility of £60 million ( €67 million).
The deal is expected to close in January 2010.
The Gaymer Cider COmpany had total cider volumes of 1.5 million hectolitres for the year ended February 2009, almost twice the size of the current UK volumes of C&C's existing cider brand, Magners.
The company had net sales of £64 million and EBITDA of approximately £5.4 million for the same year.
The deal will increase C&C's channel weighting towards the off-trade and strengthen C&C's position int he UK market.
"The acquisition of The Gaymer Cider Company provides us with established and well invested brands. The acquisition enhances our product portfolio, creates operating synergies and delivers value for our shareholders," said C&C chairman Tony O' Brien.
Shares in the company rose 12 cent, or 4.6 per cent, to €2.70 on the Dublin market this morning.
