Corby Spirit and Wine Limited to acquire Ace Beverage Group Inc.
by CM Staff
Corby will initially acquire 90% of the outstanding share capital and voting rights of Ace for $148.5 million (at an overall enterprise value of $165.0 million).
Corby to Acquire Ace Beverage Group (CNW Group/Corby Spirit and Wine Communications)
TORONTO — Corby Spirit and Wine Limited announces that it has signed a definitive agreement to acquire 90% of the outstanding shares of Ace Beverage Group Inc. for $148.5 million.
Ace Beverage Group has reportedly achieved consistent high double-digit growth to become a Canadian RTD leader. Its flagship brand, Cottage Springs, is a ready-to-drink brand in Ontario with a strong positioning in key category segments and bestsellers that include, Cottage Springs Vodka Soda, Vodka Water and Tequila Soda.
The transaction adds significant scale to Corby’s portfolio in the high-growth RTD category.
- Expansion into the large, fast-growing, and highly attractive RTD segment, where RTDs have significantly outperformed other categories in the beverage alcohol market and continue to exhibit a vast runway for future growth.
- Adds Cottage Springs in the Liquor Control Board of Ontario (LCBO), along with Ace Hill, Cabana Coast and Liberty Village to Corby’s dynamic product portfolio.
- Creates value for Corby shareholders: The transaction is expected to be highly accretive, adding an asset-light, low capex business to Corby, enabling Corby to enhance its growth profile
“Corby’s sustained growth relies on our ability to bring exciting choices to our consumers, by continually expanding into new and promising categories. We are extremely excited to partner with Ace and become one of the leading RTD players in Canada, as we believe the combined strength of our companies and people will unlock new opportunities,” said Nicolas Krantz, Corby’s President and Chief Executive Officer. “The Ace team has built an inspiring business, through a culture of execution excellence, consumer centricity and passionate people. We look forward to welcoming them to Corby and are excited about the benefits this acquisition will create for our consumers, customers, and shareholders.”
Ace Beverage Group’s Co-Founder, Cam McDonald, added “We are thrilled to join Corby, and are extremely proud of Ace’s journey and accomplishments to date. As we begin this next chapter, we believe the significant joined expertise, experience and resources will help our businesses to take the next step in our shared ambition of continuing to develop industry-leading beverages for consumers.”
Under the terms of the agreement, Corby will initially acquire 90% of the outstanding share capital and voting rights of Ace for $148.5 million (at an overall enterprise value of $165.0 million), with the remaining 10% mainly held by certain Ace founders. Corby has a path to 100% ownership of Ace through a series of two call options on the remaining shares, exercisable in 2025 and 2028.
