French drinks group Pernod Ricard expects to complete the sale of its BWG distribution operation in Ireland and Britain to the British private equity group Electra "by the early summer", Pernod's joint managing director Mr Richard Burrows has stated.

Mr Burrows said Pernod had agreed terms with Electra and a contract of sale was now being drawn up. Mr Burrows would not comment on the sale price for BWG but there has been speculation that it may be sold for around €300 million.

BWG is thought to have had sales last year of around €1.5 billion - a 12 per cent increase on the previous year - although operating profits fell from the previous year's €44.7 million. It is understood BWG management, headed by managing director Mr Leo Crawford, will have a small equity stake when the takeover is completed. As well as its wholesale distribution operations, BWG also owns the Spar and Mace convenience store franchises in the Republic and Northern Ireland respectively, the Spar franchise in the south-west of England and the Bargain Booze off-licence chain in the UK.

Mr Burrows was speaking after Pernod reported its 2001 results, where sales rose 4 per cent to €4.6 billion while operating profits were 7 per cent higher on €451 million. Pernod does not break out the contribution from Irish Distillers, but Mr Burrows said that the Irish operations had a very good year.