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News Briefs for November 28, 2016

November 28, 2016

•Casa Cuervo has put its planned initial public offering on hold amid market uncertainty following the recent U.S. presidential election. The family-held Cuervo had been planning to float 15% of the company on the Mexican Stock Exchange this fall, with the aim of raising around $1 billion to put toward M&A activity. According to Bloomberg, the Mexico City-based Cuervo was set to kick off an investor roadshow this week. However, with Mexico’s benchmark stock index down by more than 5% since Donald Trump was elected president, and enthusiasm for the IPO apparently lukewarm, Bloomberg reports that Cuervo has tabled the offering, intending to reassess in early 2017.

•Gruppo Campari has exited the Italian still wine business, selling its Sella & Mosca and Teruzzi & Puthod wineries to Italian wine distributor Terra Morretti for €62 million ($65.7m). The sale includes the trademarks, as well as the vineyards, vinification and production plants, inventory and real estate assets of both the Sardinia-based Sella & Mosca and the Tuscany-based Teruzzi & Puthod. The purchase price values the two wineries at 13.9 times pro-forma EBITDA for 2016. They achieved aggregate net sales of €21.4 million ($22.7m) in 2015. While Campari has been an aggressive acquirer in recent years—it obtained Grand Marnier earlier this year—the Italian drinks marketer has also made a concerted effort to shed non-core assets. Last year, it began moving away from Italian still wine with the sale of Enrico Serafino

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