Pernod Ricard to sell BWG to UK group

The joint managing director of French drinks and spirits group Pernod Ricard, Richard Burrows, last night told RTE that the terms of the sale of its BWG subsidiary had been agreed.

BWG, which operates Spar, is to be sold to UK venture capital group Electra. Market sources expect the deal to be worth between €220m and €250m.

The move is part of the group's strategy to concentrate exclusively on wines and spirits.

Earlier Pernod Ricard, which owns Irish Distillers posted a net profit of €358 million, up by 84% from the previous year.

'Strong exceptional profits' - in particular the sale by Pernod of its soft drinks division to the British group Cadbury Schweppes for €700 million - contributed heavily to the results, the group said in a statement.

'Excluding exceptional items relating to the refocusing of the group, net profit was €258 million, an increase of 32% compared to 2000,' the statement said. Operating profit increased by 7% to €451 million.

The owner of Jameson Irish whiskey, Havana Club rum and Australia's Jacob's Creeek wines said its spirits and wine sector enjoyed significant growth in all regions worldwide. Sales reached €1.92 billion in 2001, an increase of 9.5%.

The group's acquisition of the Canadian spirits group Seagram, for which it received final approval by regulatory authorities in October, 'did not have a significant impact on the year's accounts,' the statement said.

'Pernod Ricard forecasts a twofold increase in operating profit for spirits and wine, which will allow the group to reach in 2002 the objectives set for 2003: earnings per share up 50% compared to 1999 excluding exceptional items, goodwill amortisation, and being fully diluted,' a statement from the company said.