After much speculation, the board of Glenmorangie plc has today announced that Louis Vuitton Moët Hennessy (LVMH) will be the recommended purchaser of the company.
The sale of the company was triggered in July 2004 when the Macdonald Family and Trust, as controlling shareholders, advised the Board that they wished to sell their total shareholding.
The purchase price offered by LVMH for Glenmorangie plc is £300 million. This represents £17.176 for the 'A' shares and £24.127 for the 'B' shares.
LVMH is the world's leading luxury goods group headquartered in Paris. It operates a unique portfolio of leading international brands in wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewellery and selected retailing. Key wines and spirits brands include Hennessy Cognac, Moët & Chandon, Veuve Clicquot and Krug champagnes and Belvedere super-premium vodka.
Glenmorangie plc's brands include Glenmorangie, Ardbeg and Glen Moray single malt Scotch whiskies, Martin's Deluxe and The Bailie Nicol Jarvie blended Scotch whiskies. The Glenmorangie company will operate as a subsidiary within LVMH's wine and spirit group.
Paul Neep, Chief Executive of Glenmorangie plc, said: "This is great news for the Company, our brands and employees. As part of LVMH, we will continue to develop and grow our premium brands in their key markets."
Commenting on the Offer, Christophe Navarre, CEO of Moët Hennessy said: "Glenmorangie is a fine whisky, a growing brand and a strong company. It will be a fitting companion for Moët & Chandon, Hennessy and our other prestige brands. We look forward to a prosperous future together."
LVMH will now formally write to all shareholders outlining its offer. The sale is expected to be completed by the end of December 2004.