Transaction positions Corby and ABG as one of the leaders in the RTD category in Canada
TORONTO, April 20, 2024 /CNW/ – Corby Spirit and Wine Limited (“Corby” or the “Company”) (TSX: CSW.A) (TSX: CSW.B) today announced that its subsidiary, Ace Beverage Group Inc. (“Ace Beverage Group” or “ABG”), has signed a definitive agreement to acquire the Nude ready-to-drink (“RTD”) brand and certain assets of MXM Beverages Ltd. (“MXM”) for $11 million, which will be funded using available financing from ABG’s existing credit facility (the “Transaction”).
Following Corby’s acquisition of ABG last year, the Transaction accelerates Corby’s and ABG’s shared path to leadership of the RTD category in Canada by addressing a key priority of increasing market share in Western Canada.
“We’re excited to leverage the Nude team and brand to propel our expansion in Western Canada. Nude’s standing as a key RTD player in the Western Canadian market perfectly complements our existing position in Ontario, paving the way for a national platform to introduce cutting-edge RTD innovations to consumers nationwide,” remarked Cam McDonald, ABG’s Chief Executive Officer.
Nicolas Krantz, Corby’s President and Chief Executive Officer, added, “Following last year’s successful integration of ABG’s brands into our combined RTD portfolio, which now includes Cottage Springs, Absolut, Malibu, Jameson, Polar Ice, and J.P. Wiser’s, we are delighted at this unique opportunity to reinforce our position in this attractive segment, with the ambition to become the leading RTD portfolio in Canada. This transaction will help further drive additional innovation and unlock synergies in a critical growth category for our business.”
Subject to satisfaction of the closing conditions (including the issuance of an approval and vesting order by the Supreme Court of British Columbia), the Transaction is expected to be completed in the fourth quarter of Corby’s fiscal year 2024.
FTI Consulting and EY acted as financial advisors, and McCarthy Tétrault LLP acted as legal advisor to Corby and ABG.
Corby Spirit and Wine Limited (“Corby”) is a leading Canadian manufacturer, marketer and distributor of spirits, wines and ready-to-drink beverages. Corby’s portfolio of owned-brands includes some of the most renowned brands in Canada, including J.P. Wiser’s®, Lot 40®, and Pike Creek® Canadian whiskies, Lamb’s® rum, Polar Ice® vodka and McGuinness® liqueurs, as well as the Ungava® gin, Cabot Trail® maple-based liqueurs and Chic Choc® spiced rum, Cottage Springs® ready-to-drink beverages, and Foreign Affair® wines. Through its affiliation with Pernod Ricard S.A., a global leader in the spirits and wine industry, Corby also represents leading international brands such as ABSOLUT® vodka, Chivas Regal®, The Glenlivet® and Ballantine’s® Scotch whiskies, Jameson® Irish whiskey, Beefeater® gin, Malibu® rum, Kahlúa® liqueur, Mumm® champagne, and Jacob’s Creek®, Wyndham Estate®, Stoneleigh®, Campo Viejo®, and Kenwood® wines. Corby is a publicly traded company based in Toronto, Ontario, and is listed on the Toronto Stock Exchange under the trading symbols CSW.A and CSW.B. For further information, please visit our website or follow us on LinkedIn.
Ace Beverage Group (“ABG”) is a leading better-for-you (“BFY”) beverage alcohol company in Canada. Its flagship brand, Cottage Springs, is one of the biggest and fastest growing ready-to-drink brands in Canada. Additional popular brands include Ace Hill, Cabana Coast and Casa Del Ray. ABG’s mission is to develop, launch and market the world’s best tasting BFY alcoholic beverages.
Headquartered in Vancouver, BC, Nude Beverages was created with a mission to develop drinks that were sugar and sweetener free. Nude launched Canada’s first ready-to-drink 5% sugar-free vodka soda in 2017 and has since crafted several Nude product line extensions and new brands, such as Los Flamingos and Slappy’s.
This press release contains forward-looking statements, including statements concerning possible or assumed future results of Corby’s operations and timing of completion of the proposed transaction described herein. Forward-looking statements typically are preceded by, followed by or include the words “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans” or similar expressions. These statements are being provided for the purposes of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes and are not guarantees of future performance. Although Corby believes that the forward-looking information in this press release is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors, risks and uncertainties (including obtaining court approval and satisfying the other conditions in respect of the proposed transaction described herein) that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking information. For more information on the risks, uncertainties and assumptions that could cause Corby’s actual results to differ from current expectations, refer to the Risks and Risk Management section of our Management’s Discussion and Analysis for the three-and-six month period ended December 31, 2023 as well as Corby’s other public filings, available at www.sedarplus.ca and at https://corby.ca/en/investors/. Corby does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws. Accordingly, readers should not place undue reliance on forward-looking statements. All financial results are reported in Canadian dollars.
SOURCE Corby Spirit and Wine Limited
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