Diageo announces the sale of Picon, the French, flavoured liqueur brand, to Campari Group, for an aggregate consideration of approximately €119 million.
John Kennedy, Diageo’s President, Europe, said: “As part of our commitment to delivering consistent, efficient growth and value creation for our shareholders, we maintain a sharp focus on active portfolio management. This includes a disciplined approach to allocating resources and capital to ensure we maximise returns over time. Whilst Picon has a strong heritage and loyal consumer base in France and Belgium, today’s announcement is another example of this strategy in action”.
The transaction will generate an exceptional gain on disposal of £64 million. There will be no material impact on EPS. As part of this transaction, Diageo has agreed a two-year supply agreement with Campari Group.