C&C Group plc (formerly Cantrell & Cochrane)

C&C Group plc, formerly Cantrell & Cochrane Group, is the leading manufacturer, distributor and wholesaler of alcoholic and non-alcoholic beverages in Ireland. The Group’s principal product is cider for the on-trade and off-trade markets which is sold in Ireland under the Bulmers brand and internationally under the Magners brand. C&C Group also sells aperitifs and wines in Italy and exports Irish whiskey and liqueurs to international markets.

Reshaping the core business

In January 1999, funds advised by BC Partners completed the buy-out of C&C Group from quoted UK group Allied Domecq plc in a transaction which valued the business at €825m. The transaction was the largest buy-out in Ireland at the time.

BC Partners reshaped the group significantly during its investment period through a number of transactions:

  • In July 1999, C&C completed the add-on acquisition of Tayto, the leading crisp and snack producer in the Republic of Ireland, funded wholly from additional senior debt.
  • In October 1999, the company acquired the outstanding minority interest in Barbero, C&C Group’s Italian subsidiary. Barbero was subsequently sold in 2003 to trade buyer Campari.
  • The business paid down a considerable amount of its acquisition debt and in November 2002 was refinanced in one of the first leveraged recapitalisations in the European market.
  • C&C Group’s core cider product, Bulmers, significantly increased its market share and was successfully launched in a number of export markets under the Magners brand. Magners grew extremely rapidly from 15% of volumes in 2004, to over 60% two years later. Magners became a key driver in C&C Group’s success.

Working with management

BC Partners also supported the development of the management team during its investment period, adding several new members to senior management and recruiting Maurice Pratt as CEO. This allowed Tony O’Brien, CEO of the group for 21 years, to become Chairman.

Realising value

C&C Group was successfully floated on the Dublin and London Stock Exchanges in May 2004. Funds advised by BC Partners sold 62% of their holding at IPO and the remainder through several secondary sales until July 2006.

C&C Group has continued to perform extremely strongly since flotation and created outstanding value for its public shareholders. The share price was multiplied by a factor of nearly six in less than three years from flotation at €2.26 per share to €13.45 at year-end 2006.