New entity to continue in Quebec as Ungava Spirits Co. Ltd.
TORONTO, Aug. 31, 2016 /CNW/ - Corby Spirit and Wine Limited ("Corby" or the "Company") (TSX: CSW.A, CSW.B), a leading Canadian marketer and distributor of spirits and imported wine, announced today that it has entered into an agreement to acquire the spirits assets of Domaines Pinnacle Inc., a Quebec-based spirits and cider producer, for a purchase price of $12 million, to be paid in cash. The transaction includes Domaines Pinnacle's spirits portfolio of distinctly Canadian brands, including the unique Ungava® Premium Canadian gin brand, Chic Choc® spiced rum, and a range of maple-based liqueurs including Coureur des Bois® and Cabot Trail®, as well as related production assets and inventory. The transaction is expected to close on September 30, 2016, allowing for a smooth transition and customary conditions.
Founded in 2000 by Charles Crawford and Susan Reid, Domaines Pinnacle, based in Cowansville, Quebec, was established as a cider business (the assets of which Corby is not purchasing) and later expanded into distillation and production of artisanal spirits. Today, its products are available across Canada and more than 50 countries worldwide. Domaines Pinnacle was awarded nearly 50 national and international medals in 2015 for its high-quality products, including being named Canadian Distillery of the Year at the New York International Spirits Competition.
Subject to the closing of the transaction, the brand portfolio and other assets acquired by Corby will be operated as Ungava Spirits Co. Ltd., ("Ungava Spirits") a new, wholly-owned subsidiary of the Company incorporated to purchase the Domaines Pinnacle spirits assets. Ungava Spirits will continue to operate from the current location in Cowansville. Mr. Crawford will also join Corby as the President of Ungava Spirits, reporting to Patrick O'Driscoll, President and CEO of Corby.
"We are pleased to have signed the agreement with Domaines Pinnacle for the brands forming Ungava Spirits," said Mr. O'Driscoll. "These emerging brands are highly complementary to Corby's existing Canadian portfolio and we are looking forward to working together with Charles and his team to take them to the next level. The agreement to purchase Domaines Pinnacle's spirits portfolio demonstrates that we are committed to developing new income streams with the addition an entrepreneurial unit to our existing strategies of innovation, export and base brand rejuvenation."
The flagship of the portfolio, Ungava Premium Canadian Gin, is a unique gin with a distinctive yellow colour derived from a recipe of botanicals gathered from the tundra region of Northern Quebec. In a relatively short period of time, Ungava has grown to become the number 2 brand by sales volume in the dynamic, deluxe gin category in Canada.
"We actively sought out a company who would commit to the success of our brands and who would enable us to invest and continue to grow from our facilities in Cowansville, Quebec," said Mr. Crawford, "Corby possesses an extensive distribution network that will enable our brands to continue to grow. They are an iconic spirits company with real Canadian roots and we are thrilled that Ungava gin and the rest of our distinctively Canadian spirits portfolio will become part of the impressive lineup of Corby brands. Our team is looking forward to joining Corby and to growing Ungava Spirits brands to great heights."
"This transaction marks a milestone in delivering on Corby's commitment to further improve on the efficient use of the company's cash resources," commented Corby's Chair of the Board of Directors, George McCarthy.
Corby Spirit and Wine Limited is a leading Canadian marketer and distributor of spirits and imported wines. Corby's portfolio of owned-brands includes some of the most renowned brands in Canada, including J.P. Wiser's®, Lot 40®, Pike Creek® and Gooderham & Worts® Canadian whiskies as well as Lamb's® rum, Polar Ice® vodka and McGuinness® liqueurs. Through its affiliation with Pernod Ricard S.A., a global leader in the spirits and wine industry, Corby also represents leading international brands such as ABSOLUT® vodka, Chivas Regal®, The Glenlivet® and Ballantine's® Scotch whiskies, Jameson® Irish whiskey, Beefeater® gin, Malibu® rum, Kahlúa® liqueur, Mumm® champagne, and Jacob's Creek®, Wyndham Estate®, Stoneleigh®, Campo Viejo®, Graffigna® and Kenwood® wines. In 2016, Corby was named one of the 50 Best Workplaces in Canada by The Great Place to Work® Institute Canada for the fifth consecutive year, and was also listed among Greater Toronto's Top 100 Employers. Corby is a publicly traded company based in Toronto, Ontario, and listed on the Toronto Stock Exchange under the trading symbols CSW.A and CSW.B. For further information, please visit our website or follow us on LinkedIn, Twitter (@CorbySW), and Instagram (@CorbySW).
About Domaines Pinnacle
Domaines Pinnacle, founded in 2000 by Charles Crawford and Susan Reid, grew rapidly to become a leading producer of ice cider. In 2010, Domaines Pinnacle also began producing Coureur des Bois® products, made with 100% pure Grade A maple syrup, and Ungava® Canadian Premium Gin, made from indigenous Québec herbs and berries. Since then, it has launched several other innovative and award-winning spirits brands including Chic Choc® spiced rum and Canadian Shield® whisky. For more information, please visit www.domainepinnacle.com.
Forward Looking Statements
This press release contains forward-looking statements, including statements concerning possible or assumed future results of Corby's operations. Forward-looking statements typically are preceded by, followed by or include the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and, as such, actual results or expectations could differ materially from those anticipated in these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. All financial results are reported in Canadian dollars.
SOURCE Corby Spirit and Wine Communications
Image with caption: "The transaction includes Domaines Pinnacles spirits portfolio of distinctly Canadian brands, including the unique Ungava® Premium Canadian gin brand, Chic Choc® spiced rum, and a range of maple-based liqueurs including Coureur des Bois® and Cabot Trail®. (CNW Group/Corby Spirit and Wine Communications)". Image available at: http://photos.newswire.ca/images/download/20160830_C2221_PHOTO_EN_762945.jpg
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