Feb 2007 Financial News

Angostura buys US whiskey complex

Feb 16, 2007

CL Financial is to buy a whiskey manufacturing and bottling complex in the US from the Pernod Ricard drinks company.

The proposed purchase was announced yesterday in a statement from Angostura, the holding company for the CL Financial Group alcohol industry assets.

Angostura is one of the leading rum manufacturers in the Caribbean. In addition to the world famous Angostura® aromatic bitters, its has shareholding and strong global positions in scotch whisky, vodka, rum, Cognac and wine, as well as in fuel ethanol which is produced at a facility in south Trinidad.

CL Financial executive chairman Lawrence Duprey described the complex as “one of the largest American whiskey distilleries” and said it would “significantly add” to the group’s international spirits portfolio and overall prowess in the market.

The complex is located in Lawrenceburg, Indiana, and includes the distillery, bulk warehouse, bottling plant and finished goods warehouse, as well as the Rushville Grain Elevator.

The Lawrenceburg Distillery was built in 1847 and acquired by the former Seagram Company in 1933. Seagram was sold in 2001 to Pernod Ricard and Diageo, which divided its brands and facilities.

Pernod Ricard was planning to shut down the plant after a comprehensive, independent study concluded that the company had excess capacity in its North American manufacturing operations. The facility was to be mothballed with the bottling and finished goods operations scheduled to be closed by mid-2007, and the distillery and Rushville Grain Elevator to be closed by mid-2008.

But Pernod Ricard USA said it was concerned about the loss of jobs and the impact the closure would have on the Lawrenceburg community. The company was actively seeking a buyer for the plant.

Alain Barbet, President and CEO, Pernod Ricard USA said: “That’s why we are extremely pleased to have found a company in our industry that will save jobs by continuing to operate the facility.”

The planned sale is subject to “certain conditions and approvals,” the company said, adding that the transaction is targeted to be completed by the middle of the year. According to the terms of the proposed sale, a number of jobs would be maintained at the plant. Just how many jobs would be saved by the sale is still to be decided.

Duprey said he believed CL Financial’s bid for the facility’s assets was tentatively accepted because it “offers synergies for both companies, in addition to employment opportunities.”

Pernod Ricard USA and the CL Financial Group said the Lawrenceburg facilities will maintain its existing production schedules while the sale is being finalised.

It will continue the distilling and mellowing of Seagram’s Gin under the supervision of Angostura, while the bottling of Seagram’s Gin and Wild Turkey brand whiskies would move to Pernod Ricard’s facility in Fort Smith, Arkansas.

Pernod Ricard executives informed employees of the Lawrenceburg plant of the potential sale yesterday. The company said about 35 non-manufacturing employees will soon be transferred from the Lawrenceburg plant to a new office location in Northern Kentucky.

Source:
The Trinidad Guardian
Friday 16th February, 2007

http://www.guardian.co.tt/business1.html