Agreement between Maxxium shareholders for an early termination of the distribution contract for Vin & Sprit brands with effect from October 1st 2008.09/03/2008
Integration of Vin & Sprit portfolio, including ABSOLUT, into Pernod Ricard’s distribution network on this same date.
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 €59 million on 1st October 2008. The 25% equity stake held by Vin & Sprit in Maxxium will be redeemed by Maxxium for €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.
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
Pernod Ricard is the world’s n°2 in wines and spirits with consolidated Sales of € 8,558 million in 2014/15. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard holds one of the most prestigious brand portfolios in the sector: Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier- Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo, Graffigna and Kenwood wines. Pernod Ricard employs a workforce of approximately 18,000 people and operates through a decentralised organisation, with 6 “Brand Companies” and 80 “Market Companies” established in each key market. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption. Pernod Ricard’s strategy and ambition are based on 3 key values that guide its expansion: entrepreneurial spirit, mutual trust and a strong sense of ethics. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 index.
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