September 3, 2012 / 6:55 AM / 8 years ago

Campari buys rum maker Lascelles for $414.7 million

MILAN (Reuters) - Italian drinks company Campari (CPRI.MI) said on Monday it would buy Jamaican rum maker Lascelles de Mercado & Co LAS.JS for $414.7 million.

The company said the price corresponded to a multiple of 15 times June 2012 earnings before interest, tax, depreciation and amortisation, or $4.32 per ordinary share.

The deal is expected to close in the fourth quarter of 2012.

“We expect the deal to get a positive reception,” said an analyst, adding that the deal had a strong strategic rationale and was financially sound.

“After the deal, net debt/EBITDA ratio is estimated at 2.7, which does not stretch the balance sheet too much,” the analyst added.

With the acquisition, its third-largest following the Wild Turkey and Skyy Spirits brands, “Campari enhances its critical mass in key American markets, including the U.S., Canada, Mexico the Caribbean, and acquires a leading market position in Jamaica,” the company said in a statement.

Lascelles makes the Appleton Estate, Appleton Special/White, Wray & Nephew and Coruba brands.

Reporting by Jennifer Clark and Francesca Landini; Editing by Helen Massy-Beresford

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