The overall consideration for the 49% interest is €23.4m, which will be financed through available resources and will be paid using cash.
Sellers in the deal included CEO Marco Magnocavallo, Programma 101 SICAF S.p.A. and Boox S.r.l. 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.
According to the deal, expected to close by end of July 2020, Campari will have the possibility to increase its interest to 100% starting from 2025, based on certain conditions.
Founded in 2013, Tannico is a market leader in online sales of wines and premium spirits in Italy, with a market share of over 30%. Its offering includes 14,000 wines from over 2,500 domestic and international wineries. In addition to wines, the offering includes highend spirits.
The company also has expanded into B2B, offering professional operators with value-added services in areas such as assortment and warehouse management as well as tailored delivery solutions. In 2019, Tannico achieved net sales of €20.6m (under local GAAP). Net sales CAGR for the past three years (2016-2019) was approximately 50% and such trend grew in Q1 2020, also due to the COVID19 emergency, approximately reaching break-even from a profitability standpoint.
Since 2017, the company has expanded its presence to more than 20 markets, including USA, Germany, UK, and France.
Tannico held €1.6 million net cash as of 31 December 2019.