Emperador caps 80.9-M euros purchase of Mexican brands

MANILA, Philippines -  Emperador Inc. of business tycoon Andrew Tan, through Spanish subsidiary Bodegas Las Copas, has closed the purchase of liquor brands in Mexico for 80.9 million euros, cementing its position as the world’s largest brandy company.

Emperador told the local bourse yesterday it has completed the acquisition from Pernod Ricard of the Domecq and Pedro Domecq brands, along with the brandy, spirit and wine business linked to those brands around the world.

The purchased assets include the brands Presidente, Don Pedro and Azteca de Oro, as well as a winery in Baja California.

Emperador said the value of the transaction represents the fair value for the brands, and valuable production assets and inventory that has been purchased.

It said the acquisition cost will be sourced through a combination of cash on hand and external financing.

“This acquisition will enhance the issuer’s equity interest in Bodega Las Copas,” Emeperador said.

Bodega Las Copas is a 50/50 joint venture of Grupo Emperador Spain and Gonzales Byass.

Emperador said rhe authorization from the Mexican Antitrust Authority to proceed with transactions necessary for the completion of the asset purchase agreement was obtained last March 14.

The firm noted, however, the completion of the sale is still the subject to the authorization from the Mexican Antitrust Authority.

The purchase also gives Emperador access to Latin America, particularly Mexico where Domecq brandies corner half of the brandy market.

In 2016, Emperador posted a net income of P7.7 billion, up 11 percent from 2015.