C&C deal nets Cooneys €12.4m
Irish businessman Pat Cooney and his family yesterday netted €12.4 million in cash from the sale of Gleeson Group, a leading drinks wholesaler and manufacturer, to CC.
This is C&C’s second major acquisition in as many months following its $305 million takeover of Vermont Hard Cider in the US. When contacted , Mr Cooney said: “It’s good for the company going forward, good for C&C and good for staff. We have to look to the future. The association is good.”
The deal is subject to clearance from the Competition Authority and is not expected to close until some time next year.
C&C will pay €8 million in cash up front with €4.4 million deferred for one year. It is also taking on debts of €45.6 million, implying an enterprise value of €58 million for the transaction.
Gleeson Group is the largest distributor of packaged long alcohol drinks to the licensed on-trade in Ireland.
C&C is also acquiring the Tipperary mineral water and Finches soft drinks brands.
However, it has not bought Merry’s cream liqueur or the cider businesses of the Gleeson Group, which are being retained by Mr Cooney.
C&C chief executive Stephen Glancy said the deal would give it a “multi-beverage portfolio” and strong direct distribution capability.
He said synergies of €2 million to €3 million a year are likely from the deal over time.
He said Mr Cooney would remain with the business as a consultant.
Originally established in the late 1960s in Borrisoleigh, Co Tipperary, Gleeson Group was acquired by Mr Cooney and his brother Nicholas in 1974.
It has 11 distribution depots across the island and 600 staff.