MANILA, Philippines - Emperador Distillers Inc. is set to spend up to P3 billion for the acquisition of Spanish wine maker Bodega San Bruno S.A.
Emperador, through parent firm Alliance Global Group Inc. (AGI) and controlled by businessman Andrew Tan, said the company is conducting a due diligence on the Spanish wine maker. The process is expected to be completed by March this year, according to the disclosure.
“The agreement includes the acquisition of vineyards in Jerez, the ‘San Bruno’ trademark and inventory of high-quality and well-matured brandy,” the company said in its disclosure to the Philippine Stock Exchange.
San Bruno is a wholly owned subsidiary of Gonzalez Bayass S.A., one of the largest and oldest wine companies in Spain.
The acquisition will include the San Bruno trademark in Emperador’s growing product lineup, which includes flagship brand Emperador brandy, Generoso, the Bar and Picnic snack.
The Jerez, Spain-based Bodega San Bruno has been registered since 1942.
“We are very pleased with our acquisition of San Bruno, which will enable us to own one of the world’s best brandy stock—some of it quite rare and aged for more than 40 years in the bodegas,” Emperador President Winston Co said in the company’s earlier disclosure.
Emperador said it sold more than 31 million cases of brandy in 2012, making it the largest liquor company in the country.
As of the third quarter of 2012, revenues from the company’s food and beverage surged by 46 percent due to strong sales.
Revenues from Emperador increased to P17.24 billion and net profit of P3.44 billion, or about a quarter of AGI’s total profits for the January-to-September 2012. The company expects profits to hit P4 billion by end of 2012.
Alliance Global earlier announced plans to invest more than P40 billion this year to expand real estate, consumer goods and tourism businesses.