Last week UK-listed Stock Spirits accepted a take over from private equity’s CVC who agreed to pay a 44% premium.
Over 50% of Stock Spirits business is in Poland, other key markets include Italy, Slovenia & Croatia. Its core brands are Eastern European Vodka, Vodka based liqueurs and Limoncello.
The company has been under pressure from an activist shareholder; on-premise volumes suffered in the pandemic; Italy underperformed; and there’s upside to sell more brands through its third party networks.
I’d also suggest that its portfolio of Slavic, hard to pronounce brands is not straightforward for western fund managers to comprehend, easily.
Replace some directors, refocus management and combine other businesses will no doubt be high on CVC’s agenda; assuming there’s no counter bid.
It’s been a hot summer of private equity takeovers in the UK, prime serving on the BBQ has been retailer Morrison’s. So enticing was the offer that other predators entered the bidding.
Will CVC get to down Stock Spirits in one?