LOUISVILLE, Ky., Sept. 28, 2011 /PRNewswire/ -- Sazerac Company, Inc. ("Sazerac") announces that it has entered into an agreement to purchase from Corby Distilleries Limited ("Corby" or the "Company") (TSX:CDL.A, TSX:CDL.B) certain Corby-owned brands as well as the shares of its subsidiary that owns the manufacturing and bottling facility in Montreal, Quebec, for a purchase price of $32.9 million, plus the value of inventory on hand at closing. The transaction is expected to close on October 31, 2011.
The transaction involves the purchase of 17 brands, including De Kuyper Geneva Gin, De Kuyper Peachtree Schnapps, Red Tassel Vodka and Silk Tassel Canadian Whisky, as well as the Montreal-based manufacturing facility where a significant portion of the brands are produced. On closing, all employees of the facility will be employed by Sazerac, and a number of Corby-owned brands will continue to be blended, bottled and warehoused in the facility through a contract manufacturing agreement entered into with Sazerac.
"Canada has become an important market for Sazerac over the past decade and we are delighted to be able to further increase our presence in the market. We are particularly pleased at the prospect of being able to develop the De Kuyper brand in Canada," added Mark Brown, Sazerac president and chief executive officer.
"We are very pleased to have reached an agreement on this strategic divestiture," commented Patrick O'Driscoll, Corby president and chief executive officer. "We had some brand overlap in certain spirit categories and this transaction helps us streamline our portfolio with a more focused and targeted collection of brands, as part of our brand prioritization strategy. It also frees up more of our resources to create growth opportunities for our priority brands including Wiser's Canadian Whisky, Lamb's Rum, Polar Ice Vodka and McGuinness Liqueurs; resulting in increased shareholder value."
The large majority of Corby's remaining brands will continue to be manufactured in the Hiram Walker & Sons Limited facility located near Windsor, Ontario, which is managed by Corby on behalf of Pernod Ricard S.A.
"Corby is committed to a strategy of value growth and a focused brand portfolio that positions us for long-term growth in key categories with premium spirits and wines," added O'Driscoll. "This divestiture is an important step in moving that strategy forward."
About The Sazerac Company
Sazerac is based in New Orleans, Louisiana and is one of New Orleans' oldest family owned, privately held companies. The company has operations in New Orleans, Louisiana; Frankfort, Bardstown, Louisville and Owensboro, Kentucky; Fredericksburg, Virginia; Carson, California; Baltimore, Maryland; and Montreal, Canada. For more information, please visit www.sazerac.com.
About Corby Distilleries Limited
Corby's portfolio of owned-brands includes some of the most renowned brands in Canada, including Wiser's Canadian Whisky, Lamb's Rum, Polar Ice Vodka and McGuinness Liqueurs. Through its affiliation with Pernod Ricard S.A., Corby also represents leading international brands such as ABSOLUT vodka, Chivas Regal, The Glenlivet and Ballantine's Scotch whiskies, Jameson Irish whiskey, Beefeater gin, Malibu rum, Kahlua liqueur, Mumm champagne, and Jacob's Creek, Wyndham Estate and Graffigna wines. The existing Voting Class A Common Shares and Non-voting Class B Common Shares of the Company are traded on the Toronto Stock Exchange under the symbols CDL.A and CDL.B, respectively.
Forward Looking Statements
This press release contains forward-looking statements, including statements concerning possible or assumed future results of Corby's operations. Forward-looking statements typically are preceded by, followed by or include the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and, as such, the Company's results could differ materially from those anticipated in these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.
CONTACT: Amy Preske, 1-502-696-5957
SOURCE Sazerac Company, Inc.
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