(Added details throughout document, quote from Director General in paragraphs 3-4)
Spirits group Campari CPRI.MI has agreed to buy historic French cognac house Courvoisier from Beam Suntory for an initial price of $1.20 billion, representing the Italian group’s largest-ever deal.
Campari said cognac would now become the group’s fourth major item, alongside aperitifs, bourbon and tequila.
“We are very pleased to acquire one of the four largest historic cognac houses,” Bob Kunze-Concewitz, chief executive of Campari, said in a statement.
“The addition of Courvoisier cognac to our portfolio of global priorities is a rare and unique opportunity to expand our premium spirits portfolio and cognac offering,” added Mr. Kunze-Concewitz, who will leave his role on next year at .
Campari said the acquisition of Courvoisier, founded in 1828, would give it a significant boost in the U.S. market and help it expand its production and bottling capacity in France.
The transaction, which is expected to be finalized next year, provides for an earn-out of up to $0.12 billion payable in 2029, Campari said in a statement.