Stock Spirits grabs grappa distiller

Vodka distiller Stock Spirits has acquired Italian grappa and sparkling wine maker Distillerie Franciacorta for up to €26.5m, including adjoining land for the construction of a new production facility.

The London-listed company will pay an initial €3.0m upon signing to the selling Gozio family, a further €21.5m at completion and up to €2m deferred consideration payable over a four-year period.

Distillerie Franciacorta was founded in 1901 in the Lombardy region of Italy.

Stock Spirits is acquiring the entirety of Distillerie Franciacorta's spirits and liqueurs business, including the prestigious Franciacorta sparkling wine brands, though all aspects of the wine manufacturing will be retained by the vendor.

As part of this transaction, Stock Spirits will also take a long-term lease of the historic Borgo San Vitale site, the distillery and visitor-centre that is an integral part of Distillerie Franciacorta's heritage.

Stefano Gozio, one of the selling shareholders of Distillerie Franciacorta and a member of the founding Gozio family, will continue to act as a brand ambassador and consultant to Distillerie Franciacorta.

Major Stock Spirits shareholder, Western Gate, which has recently raised objections about the company's lack of growth and acquisition activity, said at the upcoming AGM it still intends to vote against the re-election of David Maloney and John Nicolson.

A spokesperson for Western Gate said: “Assuming this is a cash acquisition, it will be immaterial to the company’s balance sheet. Stock Spirits will continue to have the lowest net debt/EBITDA position among its peers and its ability to deliver cash back to shareholders through a higher and or special dividend or do further M&A is unchanged.

“This simply does not go far enough and is another example of Stock Spirits only acting under pressure from shareholders.”