Italy's Campari has agreed to buy historic French cognac house Courvoisier from Beam Suntory for $1.2 billion, marking a major breakthrough in the brandy business with Campari's biggest acquisition in history.
The purchase of a top-four cognac brand is the crowning achievement for chief executive Bob Kunze-Koncewitz, who is due to leave next year after leading Campari through a long list of deals, including the €490m purchase of Grand Marnier in 2016 .
"Christmas came early for Campari this year," Kunze-Koncewitz told analysts.
The Italian group, which wants half of its growth to come through acquisitions as it seeks to become a more serious competitor to spirits giants Diageo and Pernod Ricard, said cognac would now become the group's fourth major , along with aperitifs, bourbon and tequila.
According to Campari's website, it has so far only owned one smaller cognac brand, Bisquit, although Grand Marnier, a blend of cognac and orange liqueur, is a key part of its portfolio.
The deal will boost Campari's presence in the United States, which accounts for 55% of Courvoisier's sales, and offers transformational potential in the Asia-Pacific region, also a large cognac market led by China.
Building market share in the US and China is crucial for the group to better compete with its larger rivals.
The deal is expected to increase Campari's net sales by about 9%, Kuntse-Končevitz told analysts./BGNES
Campari bought Courvoisier for $1.2 billion
