CVC funds will snap up FTSE-listed Stocks Spirits in £767m takeover deal

CVC funds will acquire the London-listed vodka maker in a takeover deal valuing it at £767m, the firms have announced.

Stock Spirits has accepted the private equity firm’s offer of 377 pence per share – which represents a premium of 41 per cent to the stock’s 268 pence closing price on Wednesday. CVC’s offer also represents a 20 per cent premium on Stock Spirits’ all-time high share price of 315 pence in June 2014. Stock Spirits is a leading alcohol company in central and eastern Europe, where it sells its 1906, Stock Prestige and Vodka No.1.

The company has production facilities in Poland, the Czech Republic, Germany and Italy – aligning with its core markets Poland, Czech Republic and Italy, which account for 90% of its sales. CVC’s takeover offer is expected to become effective between early December 2021 to early January 2022.

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In a statement explaining the reasons for its offer, CVC Funds’ Bidco investment arm said: “The future development of Stock Spirits will be best served as a private business, operating with a leaner central overhead, with rapid access to capital and with the benefits of a longer-term investment approach.”

“The directors of Stock Spirits are confident in the long-term prospects of the Stock Spirits Group and believe that the offer reflects our strong position and represents compelling value for Stock Spirits Shareholders,” said David Maloney, chairman of Stock Spirits.

“We believe that CVC’s support for our existing strategy and the investment that it intends to make in order to grow our business means that this offer will benefit all of Stock Spirits’ stakeholders. We are therefore unanimously recommending the offer to Stock Spirits Shareholders.”

Source: City A.M.

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