Campari To Buy 80 Percent Of Cabo Wabo Tequila For 80 Million USD
Submitted by Tequila.net
May 07, 2007
MILAN (Thomson Financial) - Davide Campari-Milano SpA, the Italian beverage group, said that it has signed an agreement to buy an 80 percent stake in Cabo Wabo Tequila for 80 million USD.
Cabo Wabo was founded in 1996 by Sammy Hagar, former lead singer of the band Van Halen, who is also a major shareholder, it said.
The deal, which is expected to be closed in Jan 2008, values Cabo Wabo 11.8 times expected EBITDA for 2007.
The 'ultra premium' brand sells about 70,000 nine-litre cases a year, mainly in the US, and is one of the fastest growing brands in the US spirits market, Campari said.
The company said it can purchase the remaining 20 percent in two tranches. A 15 pct stake can be bought in 2012 and a 5 pct stake in 2015.
AFX News / HemScott.com