Campari Makes Jamaica Buy

Italy’s Gruppo Campari has agreed to buy control of Jamaican rum maker Lascelles deMercado, it says, in a transaction that could reach $414.8m. Becoming the latest global beverage player to buy into LatAm, Campari takes an 81.4% stake from CL Financial, and expects to get the remainder through a tender offer by the end of the year. The deal comes at around 15x Ebitda for the 12 months prior to June, the buyer says. It plans to fund the deal through credit facilities provided by Bank of America Merrill Lynch, its advisor on the deal, and Banca Intesa and Deutsche Bank. Lascelles deMercado’s brands include Wray & Nephew and Coruba. The deal follows transactions in the region including AB InBev’s purchase of the remaining 50% of Mexico’s Modelo and acquiring control of Cerveceria Nacional Dominicana for more than $1bn, both earlier this year. Diageo remains in discussions for Mexico’s Jose Curevo, which could cost it $3bn.