Corby Spirit and Wine to acquire Ace Beverage Group

Manufacturer and distributor of spirits and imported wines, Corby Spirit and Wine, has acquired 90% of the outstanding shares of Ace Beverage Group, for CAD 148.5 million (approx. $111.21 million).

Corby is Canada’s second-largest marketer and distributor of spirits and wines and is majority owned by Pernod Ricard.

Ace is a leading better-for-you alcoholic beverage company in Canada. Ace claims that its flagship brand, Cottage Springs, is the leading RTD brand in Ontario, with bestsellers including Cottage Springs Vodka Soda, Vodka Water and Tequila Soda. Ace’s portfolio also boasts Ace Hill, Cabana Coast and Liberty Village.

Corby says the transaction will add “significant scale” to Corby’s portfolio in the high-growth RTD category, as the company expects the Ace team to bring a deeper understanding of the category and its consumers, along with innovation capabilities.

Nicolas Krantz, Corby’s president and CEO, said: “We are extremely excited to partner with Ace and become one of the leading RTD players in Canada, as we believe the combined strength of our companies and people will unlock new opportunities…We look forward to welcoming them to Corby and are excited about the benefits this acquisition will create for our consumers, customers, and shareholders.”

He continued: “Corby’s sustained growth, as well as Pernod Ricard’s, relies on our ability to bring even more exciting choices to our consumers, by continually expanding into new and promising categories. RTDs are one such category and we are excited to partner with such visionary entrepreneurs to further develop our rich portfolio of RTDs now made up of ABG, Corby and Pernod Ricard brands.”

Corby expects the transaction to be “highly accretive,” adding an asset-light, low capex business to its portfolio, enabling the Canadian company to enhance its growth profile, maintain strong margin, low leverage and return capital to shareholders.

Ace Beverage Group’s co-founder, Cam McDonald, added: “We are thrilled to join Corby, and are extremely proud of Ace’s journey and accomplishments to date. As we begin this next chapter, we believe the significant joined expertise, experience and resources will help our businesses to take the next step in our shared ambition of continuing to develop industry-leading beverages for consumers.”

The remaining 10% stake in Ace will be “mainly held by certain Ace founders”. Corby has a path to 100% ownership of Ace through a series of two call options on the remaining shares, exercisable in 2025 and 2028. The transaction will be funded using available cash and financing in the amount of CAD 120 million (approx. $89.86 million) from Corby’s majority shareholder, Pernod Ricard.