CLIENT : P101

TRANSACTION: M&A

DATE: June 2020

SECTOR: Consumer and Retail

Deal description:
Campari Group acquires a 49% interest in Tannico, the leading e-commerce platform for wines and premium spirits in Italy.

The transaction structure foresees that Campari Group acquires 39% of the share capital of Tannico and simultaneously subscribes to a reserved capital increase to reach, in aggregate, a 49% shareholding.

Founded in 2013, Tannico is the market leader in online sales of wines and premium spirits in Italy, with a market share of over 30%. With over 7 million unique visitors in the last 12 months, Tannico’s offering comprises 14,000 wines from over 2,500 domestic and international wineries. In addition to wines, the offering includes highend spirits. Leveraging an unconventional communication approach for the wine industry, an advanced technology applied to online sales and an innovative digital marketing strategy, Tannico has progressively expanded intoB2B, offering professional operators with relevant value-added services in areas such as assortment and warehouse management as well as tailored delivery solutions.

In 2019, Tannico achieved net sales of €20.6 million (under local GAAP). Net sales CAGR for the past three years (2016-2019) was approximately 50% and such trend grew significantly in Q1 2020, also due to the COVID-19 emergency, approximately reaching break-even from a profitability standpoint. Since 2017, Tannico has expanded its footprint to more than 20 markets, including USA, Germany, UK, and France.

The overall consideration for the 49% interest is €23.4 million. Tannico held €1.6 million net cash as of 31 December 2019. The consideration will be financed through available resources and will be paid using cash.

Pursuant to the investment agreement, Campari Group will have the possibility to increase its interest to 100% starting from 2025, based on certain conditions.

The transaction is expected to close by end of July 2020.

Vitale acted as sell advisor, assisting the shareholders of Tannico in the definition of the transaction’s structure.

Deal value: €23,4m

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