Glenmorangie UPDATE

by **Sally Toms** » Thu Oct 21, 2004 9:17 am

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.

by **Dominic Roskrow** » Thu Oct 21, 2004 3:10 pm

Whisky Magazine believes that this sale is the best that the staff and supporters of Glenmorangie could have hoped for, and for several reasons. Firstly, LVMH is committed to keeping the bottling plant at Broxburn open. Other leading contenders are said to have favoured closure. This is where most of the company¹s jobs are. Secondly, the purchaser isn¹t one of the massive whisky distillery owners. This is important because it is difficult to see how a Diageo or Allied would have made the three principle distilleries of Glenmorangie fit in to their existing portfolios. There will be some concern that Diageo has a 34 per cent stake in LVMH but we don¹t share it. LVMH functions as a separate entity, and we are unaware of Diageo interfering in the company¹s other business in a negative way. And despite the bad feeling from the Cardhu situation, Diageo isn¹t an enemy of the whisky industry anyway. Adding Glenmorangie to its business makes a great deal of sense for LVMH, and the purchase fits comfortably. It has the makings of a happy relationship. The French company specialiases in luxury goods and will understand the need for an investment in quality, so Glenmorangie¹s commitment to the best barrels and so on will not be threatened whatsoever. And if anyone has any question marks about the fact that the new owner is French then look no further than the commitment exhibited by Pernod Ricard towards distilleries such as The Glenlivet and Aberlour. Glenmorangie has the potential for a far greater global presence. And that¹s very exciting indeed.

by **Admiral** » Thu Oct 21, 2004 3:18 pm

I wonder if there will be any repercussions or consequences for the SMWS, which was recently "purchased" by Glenmorangie?

Admiral

by **Lawrence** » Fri Oct 22, 2004 12:16 am

Yes Admiral, I was wondering about the SMWS also, while the SMWS does not have the revenue stream of Glenmorangie, Ardbeg & Glen Moray it does have a very high profile and huge potential. It would be a shame if the new owners do not understand what they have in the SMWS and its 20,000 worldwide members.

by **Spirit of Islay** » Sun Oct 24, 2004 8:09 pm

I agree with a lot Dominic says , i think of all the potential buyers this one has the best credentials for buying Glenmo .
Regarding the SMWS i hope they realise that the Society has one very good quality , it's Uniqueness !
Just wondering how long it will be before Jackie gets Ardbeg badged Louis Vuitton bags in at the Old Kiln ! :lol:

Slainté
Gordon