C&C Group buys Gaymer Cider for £45m
![Gaymers: added to C&C portfolio](/var/wrbm_gb_hospitality/storage/images/_aliases/wrbm_small/7/4/7/1/1251747-4-eng-GB/C-C-Group-buys-Gaymer-Cider-for-45m.jpg)
Magners producer C&C Group has acquired Gaymer Cider Company from Constellation Brands for £45m.
The deal will be financed via a new £60m bank facility and C&C expects the deal to be complete by mid-January 2010, subject to Office of Fair Trading clearance.
The deal includes the purchase of Gaymer cider brands Blackthorn, Olde English and Gaymers; the cider production facility at Shepton Mallet, Somerset and the distribution warehouse at Bristol.
Gaymers total cider volumes for the year ended February 2009 were approximately 1.5m hectolitres — almost twice the size of Magners' current UK volumes. Off-trade volumes, including a number of own label ciders, account for 80% of volumes.
For the year to 28 February 2009, Gaymers generated net sales of £64m and EBITDA of approximately £5.4m
"The Transaction diversifies C&C's portfolio within the overall cider category, strengthens the Group's packaged cider offering and provides C&C with an established mainstream draught cider brand," C&C said.
"It also increases the Group's channel weighting towards the off-trade to better reflect the channel split of the overall UK cider category and significantly enhances the Group's route to market.
"The Transaction will strengthen C&C's position within the growing UK cider category, the largest cider market in the world by value."
Tony O' Brien, chairman of C&C, said: "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."
John Dunsmore, chief executive of C&C Group, added: "We are pleased to announce our agreement to acquire The Gaymer Cider Company at a price which we consider to be highly attractive for our shareholders.
"This transaction strengthens our position within the world's largest cider market and broadens the scope of the Group's existing cider offering."