The Keepers Holdings Inc., the liquor holding company of businessman Lucio Co, plans to acquire a 50-percent stake in wine and brandy producer Bodegas Williams & Humbert SA based in Jerez de la Frontera, Spain
The Keepers confirmed the plan in a disclosure to the stock exchange Tuesday, but did not provide the value of the transaction.
Bodegas Williams & Humbert is a Spanish company with over 140 years of history producing alcoholic beverages. The company, owned by the Medina family, is the producer of “Alfonso,” a leading brandy brand.
The Keepers distributes Alfonso brandy in the Philippines and accounts for 60 percent of the company’s revenues.
Its board of directors appointed Isla Lipana & Co. (PricewaterhouseCoopers) to conduct a fairness opinion on the planned acquisition.
John Haoa, investor relations head of The Keepers, said the 50-percent stake that the company plans to acquire would include the 30 percent that the Co family directly owns in Bodegas Williams & Humbert.
The company expects to close the deal before the end of the year.
Co became a shareholder in Williams & Humbert in May 2018 when he acquired a 30-percent stake in the Jerez winery owned by the Medina family. The investment allowed Williams & Humbert to strengthen its business and put it in a position to pursue expansion.
Williams & Humbert, founded in 1877 by Alexander Williams and Arthur Humbert, has one of the longest histories and traditions in making Sherry wine and brandy with the Jerez/Xeres/Sherry designation of origin, and other fine spirits and products in the food industry. It has more than 30 proprietary brands marketed in over 70 countries.
The Medina family acquired a stake in the firm in 1995, which they gradually increased until they owned 100 percent of its share capital in 2013.
Hao said The Keepers would request certificate of non-coverage from the Philippine Competition Commission to consummate the deal.
The Keepers will fund the acquisition from P4.5 billion share sale it conducted in 2021. The company earlier said it was looking for possible acquisitions overseas to expand its portfolio.
The Keepers owns and operates Montosco Inc., Meritus Prime Distributions Inc. and Premier Wine and Spirits Inc., three of the leading players in the domestic distribution of leading international liquor, wine and specialty beverage brands.
It is the largest distributor of imported spirits in the Philippines, holding a 74-percent market share in terms of volume and 66.9 percent based on retail sales value in 2020, according to IWSR Drinks Market Analysis Limited.
Its portfolio includes brands such as Alfonso, Johnnie Walker, Jose Cuervo, Jim Beam and Jinro.