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Pernod Ricard (RIFP; Baa1/BBB+/BBB+) Selling its International Wines Business

CONSUMER CYCLICALS

Buyer is non-credit issuer Australian Wine Holdco Limited (AWL). We don't have $ proceeds but it says 10m 9l cases annually from the brands but strategic wines was only 4% of FY23 sales (separate to strategic international brands which is 63% of group). AFR was rumouring it was in the ~$500m mark back in May on leaked reports. Expected to close in 2H25 (end of this year) subject to regulation.


Sale will increase its focus on premium spirits and champagne brands. Cognac we don't see as large for Pernod (Martell, Augier & Ararat brands) - but retaliatory tariffs from China has been a overhanging concern. Remy Cointreau (Baa3/NR) is the more exposed but has no large lines outstanding.


Presser here.

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