By Abigail Summerville and Amy-Jo Crowley
NEW YORK (Reuters) – Pernod Ricard is exploring a sale of its champagne brand G.H. Mumm, according to five sources familiar with the matter, as it looks to focus on premium labels in its portfolio.
The French spirits company behind Absolut Vodka and Jameson Irish whiskey is working with investment bank Rothschild & Co on the possible divestiture, that could attract interest from other spirits and beverage companies, the sources said.
The brand is unlikely to be sold for less than three times its annual sales of 200 million euros ($207 million), one of the people said. The company has been selective in who it sells assets to and a sale may not happen, the person cautioned. The sources were speaking on condition of anonymity because the matter is not public.
“Pernod Ricard regularly assesses and evaluates its strategic opportunities and is continuously exploring options, including divestments or the streamlining” of businesses, the company said in a statement.
“This is a usual process in line with management’s mission of delivering value to shareholders, employees, clients and stakeholders.” It added no decision about any particular action had been taken.
Rothschild declined to comment.
($1 = 0.9639 euros)
(Reporting by Abigail Summerville in New York and Amy-Jo Crowley in London. Additional reporting by Emma Rumney. Editing by Anousha Sakoui, Josephine Mason and Mark Potter)
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