Drinks and snacks group C&C has sold key brands from its Italian spirits and wine business, Barbero, to another Italian drinks group, Campari, for €150 million.
The group, which could seek a stock market listing next year, said it will use the proceeds of the sale to reduce its debts.
The deal does not include Barbero's sparkling wine brand, which was sold to Gancia Group, and the Italian liqueur, Frangelico, which will remain within the C&C Group.
Announcing the sale yesterday C&C managing director Mr Maurice Pratt said it was not a core part of the group's business and would not have an impact on its strategy. Mr Pratt said C&C had first purchased the company for the Frangelico brand, which it is retaining.
"Looking forward the group will comprise a strong, cash-generating brand portfolio with leadership positions in domestic and international markets."
Mr Pratt added that it would continue to work towards a stock market flotation when conditions were "appropriate".
C&C was forced to pull its planned flotation due to turbulent stock market conditions in 2002. Yesterday he said a stock market flotation was still its preferred option and that it would assess market conditions in 2004.
Barbero has been part of the C&C group for 13 years. It is a leading Italian spirits and wine company, whose main brands include Aperol, Aperol Soda and Mondoro. The company is based at Canale, Italy, and employs 120 staff, who will transfer to Campari.
Mr Pratt said C&C would use the €150 million to reduce its debts. When it reported figures in February this year it had net debt of €715 million. At that time it said it planned to reduce its debts by around €50 million by February 2004. Following this sale, Mr Pratt signalled that C&C's net debts could fall to about €500 million by next February.
C&C is one of the largest manufacturers, marketers and distributors of branded beverages and savoury snacks in Ireland.
The group owns brands, including Bulmers Cider, Ballygowan Water, Club Orange and Tayto crisps. It also distributes international brands, including 7Up and Pepsi, and a portfolio of wines and spirits in Ireland. Its international spirits and liquors business includes Tullamore Dew, Carolan's Liqueur, Irish Mist and Frangelico.
The Campari group is the sixth-biggest player in the global spirits sector, trading in more than 190 markets around the world, with a leading position in the Italian and Brazilian markets and a strong presence in the US, Germany and Switzerland.
It had undertaken a number of acquisitions in the last few years, adding to its portfolio of spirits, wines and soft drinks. These include Campari, SKYY Vodka, Cynar and Cinzano and leading local brands. The group has 1,400 employees.
Its parent company, Davide Campari-Milano, has traded on the Milan stock exchange since July 2001.
