announced it intends to acquire privately-owned Belgian cider producer Stassen Ciders from the current management. Terms of the transaction are not disclosed but the annual report of Stassen NV shows a 2011 revenue of approximately € 36m, an operating profit of approximately € 1.0m and a € 0.88m net profit. Stassen’s equity position at the end of last year was about € 7.9m.
commented that the Stassen acquisition provides the company with attractive cider technology as well as additional production capacity in Europe.
is attempting to develop the cider category (which was originally mainly a UK business at S&N) in Europe, and this acquisition adds additional cider technology. Nevertheless, we think will pay a few tens of millions of EUR maximum, meaning this should be a very small acquisition. No change to our BUY rating and € 50 target price.