C&C Group, the Irish drinks producer behind Magners cider, has sold its spirits and liqueurs division to William Grant, the group behind Glenfiddich, for Eu300m (£259m), it was revealed this Friday.
The division includes a complementary portfolio of premium niche brands — Tullamore Dew, Carolans, Frangelico and Irish Mist - which it said are exported to over 80 international markets.
The company, which last year paid Eu45m for Gaymers cider, said it would use the proceeds of the disposal to pay down debt.
For the year ended 28 February 2009, the division generated revenue of Eu85.9m, ebitda before exceptional items of Eu16.1m and ebit before exceptional items of Eu15.3m.
Stephen Glancey, C&C's chief operating officer, added: "While the division represents a comparatively small component of C&C‚s overall earnings, the consideration reflects the quality of its brand portfolio and its strong market positions.
"The group intends to reduce debt and invest to support the continued development of a cider-led long alcohol drinks portfolio."
The division‚s management team and employees will transfer with the business on disposal. The division employs 57 people in Ireland.
William Grant will operate the division‚s packaging facility located at the C&C‚s manufacturing site in Clonmel, Co. Tipperary.