JSE-listed Distell on Wednesday entered into a definitive agreement to sell its cognac business, Bisquit Dubouche et Cie, to Italian branded beverage company Campari Group for an enterprise value of €2.5 million, or R800-million.
The disposal is expected to close during the first quarter of 2018.
Under the terms of the agreement, Campari will acquire all of the shares in Bisquit, existing stock, maturing inventory, trademarks and production facilities including warehouses, blending cellars and a bottling plant of the entity.
The disposal is in line with Distell’s strategic intent to focus on a core portfolio of categories, brands and assets that support the company’s growth ambitions and ultimately generate long-term shareholder value.