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.
About Corby
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