The Italian drinks company Davide Campari has agreed to acquire the premium American bourbon whiskey brand Wild Turkey for $575 million from France's Pernod Ricard, a statement said on Wednesday.
The cash deal represents Campari's biggest acquisition ever and, if approved by antitrust authorities, sales of Wild Turkey will potentially represent almost two thirds of the Italian company's international business.
The United States is Wild Turkey's biggest market followed by Australia and Japan.
By acquiring the 101-proof real Kentucky straight bourbon, Campari also bought its bourbon-based liqueur product American Honey, the only one on the market, and the company's Kentucky distillery, as well as its inventory.
The operation was financed by credit lines from Bank of America, BNP Paribas, the Calyon investment bank and Intesa SanPaolo, Italy's number two bank.
Wild Turkey was Campari's fourth acquisition in the United States after Skyy vodka, Cabo Wabo tequila and X-Rated - a mix of French vodka, blood-red oranges and other fruit juices - for a total investment of $1.1 billion since 2002.
''With Wild Turkey we add a brand of strategic importance to our portfolio and further bolster our position in the premium spirits sector,'' Campari CEO Bob Kunze-Concewitz said.
Wild Turkey, he added, will allow Campari ''to take a major step forward in becoming a world leader in the spirits sector and to continue to expand on the profitable US market''.
The CEO added that he expected the acquisition to boost Campari's profits already this year.
News of the acquisition initially pushed Campari shares down 1% on the Milan market, but the stock then shot up by some 6.5% before levelling off in the afternoon with gains of close to 5%.
Aside from producing the red Campari aperitif or 'bitter' and Campari Soda, the Italian company also owns the Cinzano vermouth and a number of other alcohol and soft-drink brands.
Bourbon is a 'corn whiskey' which takes its name from the county in Kentucky where it was originally made.
