Campari To Buy 80% Of SAMMY HAGAR's Cabo Wabo Tequila For $80 Million US
May 7, 2007, 17 years ago
SAMMY HAGAR's official MySpace site has issued the following blog:
Milan (Thomson Financial) - Davide Campari-Milano SpA, the Italian beverage group, said that it has signed an agreement to buy an 80 percent stake in Cabo Wabo Tequila for 80 million USD.
Cabo Wabo was founded in 1996 by Sammy Hagar, former lead singer of the band VAN HALEN, who is also a major shareholder, it said.
The deal, which is expected to be closed in January 2008, values Cabo Wabo 11.8 times expected EBITDA for 2007.
The 'ultra premium' brand sells about 70,000 nine-litre cases a year, mainly in the US, and is one of the fastest growing brands in the US spirits market, Campari said.
The company said it can purchase the remaining 20 percent in two tranches. A 15 pct stake can be bought in 2012 and a 5 pct stake in 2015.
