Suntory Holdings Ltd.'s Beam Suntory has announced that it is selling its Spain-based brandy and sherry business to a subsidiary of Emperador Inc., a Philippines-based beverage company for 275 million euros or $291 million. The deal is said to be all-cash, Wall Street Journal reported.
The move is in mutual benefit of both companies. Emperador, through Grupo Emperador Spain S.A. has been on a buying spree as it looks to expand its global footprint. Beam Suntory, on the other hand, is focusing its efforts on its portfolio of American, Japanese, and Scotch whiskey brands.
Included in the acquisition are brandy brands Fundador Pedro Domecq, Spain's Terry Centenario, and Equatorial Guinea's Tres Cepas. UK sherry-wine brand Harveys is also included in the deal, as well as two production facilities in Spain.
The Jerez facilities include ageing cellars, vineyards, and blending and bottling facilities, while the Tomelloso facility is a brandy distillery, CNN Philippines reported. According to Emperador, Bodegas Fundador is Spain's “largest and oldest brandy cellar established in 1730.”
Early last year, Suntory acquired the makers of Jim Beam bourbon for $13.6 billion. After that, the company had been spinning off global assets like its own stake in a joint venture with Tsingtao Brewery from China.
In May, Suntory also sold off its French cognac brand Louis Royer and Co. to Terroirs Distillers of France. Emperador also made a bid for this but the deal was awarded to the French distillers.
Emperador had been rapidly expanding in recent years. Last year it bought Scotch whiskey makers Whyte & Mackay for £430 million ($726 million) and earlier this year got a 50% stake of Spanish brandy maker Bodega Las Copas.
Emperador president Winston Co said the company is planning on introducing “several proudly Philippine-made products” to international markets starting next year.
