Remy Cointreau : Why the stock exchange welcomes the takeover of Brillet cognac by Rémy Cointreau
(BFM Bourse) - The announcement of exclusive negotiations to take over the venerable J.R. Brillet house, producer of Fine Champagne cognac, has enabled the price of Rémy Cointreau to climb to its highest level since the summer of 2018. The acquisition of the independent producer is helping to loosen the constraints weighing on the supply of eau-de-vie used to make cognac.
The Rémy Cointreau family group, one of the major players on the world spirits market, rose by 4.11% on Thursday on the stock market to 124 euros, while the company is preparing to add a new brand to its portfolio of cognacs, currently based on the Rémy Martin and Louis XIII brands. The share price has thus risen to its highest level since August 2018, thanks to a rebound which has totaled more than 30% since the start of the year.
Rémy Cointreau announced on Wednesday evening that he was in exclusive negotiations with the Brillet family with a view to acquiring the JR Brillet cognac house, based in Graves-Saint-Amant, and part of its vineyard.
Founded in 1656, this house is currently run by the eleventh generation of the Brillet family. A fruitful history which has led to the constitution of "a wine estate and a stock of eaux-de-vie which enables it to produce quality products", the purchaser states soberly.
"The acquisition of the JR Brillet House will represent, for Rémy Cointreau, the opportunity to integrate into its portfolio spirits with real development potential and to develop over the long term a stock of cognac and vineyards of very high quality". Brillet owns more than 50 hectares of vines located between Grande Champagne and the banks of the Charente river in Petite Champagne, the two most prestigious of the six crus in the cognac appellation. It has not been specified exactly what part of this estate would be included in the acquisition.
By way of comparison, the Rémy Martin estates - the second most sold cognac in the world - have 270 hectares of vines eligible for the appellation.
Subject to the completion of the usual administrative procedures, the group expects to finalize the transaction in the autumn of 2019.
Faced with structural constraints on supply, available-for-sale assets are becoming increasingly scarce. The group's last major acquisition in this niche dates back to 2012 with the purchase of Larsen, whose vineyard was retained by Rémy Cointreau before selling the brand almost immediately to the Nordic group Altia (already the buyer of J.A. Renault).
Source : tradingsat.com