Lucio Co acquires Spanish brandy firm for P5 B
Lucio Co's The Keepers Holdings Inc., the largest imported liquor distribution in the Philippines, has executed the Share Purchase Agreements covering the acquisition of 50 percent of Bodegas Williams & Humbert SA for P5 billion.
In a disclosure to the Philippine Stock Exchange, the firm said its acquisition of the 50 percent equity interest in Bodegas Williams & Humbert SA represents a strategic long-term investment.
It explained that this will enhance the competitive position of the group and strengthen its hold and secure the company’s supply line of its flagship brand and category, “Alfonso” brandy.
The investment will also transform the company’s business model from a pure trading to a manufacturing and distribution one and provide an opening into markets outside the Philippines.
The equity investment will also be bottom line accretive from its share in the future net income of Bodegas Williams & Humbert.
The acquisition includes the 30 percent direct stake of Lucio Co in the Spanish brandy producer which was acquired in 2018. Co is the controlling shareholder of The Keepers.
The consideration amounts to Euro88.75 million and is based on the independent valuation undertaken by PricewaterhouseCoopers (PwC). The cash consideration will be paid upon signing the Share Purchase Agreement and completing other legal and closing requirements.
Bodegas Williams & Humbert SA is a respected family-owned winery in Jerez de la Frontera, Spain, founded 140 years ago.
A forward-looking company producing a wide variety of wine and spirits specially sherry and is the leading producer of light brandy.
Bodegas William & Humbert SA distributes its products in Spain and in 50 countries worldwide and has been producing Alfonso, the Keepers’ biggest brand and the number one imported brandy in the Philippines for more than two decades.