42 BELOW TO PAY PANACHE IMPORTERS $16 MILLION
Bacardi and its newly acquired New Zealand-based vodka company, 42 Below, have agreed to pay $16.2 million to terminate a marketing agreement with US importer Panache International.
Panache owned the United States distribution rights for 42 Below, and was granted an interim injunction in the High Court at Auckland (New Zealand) on October 31, preventing 42 Below from divulging any commercially sensitive information to Bacardi.
Bacardi launched a $137 million takeover bid last month for 42 Below that was subject to 90% acceptance. Acceptances stalled at about 75%, however, ahead of the offer's December 15 closing date.
Under the termination deal, 42 Below will pay Panache $9.8 million (NZ$14.3 million). The founders of the company, Geoff Ross, Grant Baker and Steve Sinclair, will pay the remainder from their personal funds.
Panache owned the United States distribution rights for 42 Below, and was granted an interim injunction in the High Court at Auckland (New Zealand) on October 31, preventing 42 Below from divulging any commercially sensitive information to Bacardi.
Bacardi launched a $137 million takeover bid last month for 42 Below that was subject to 90% acceptance. Acceptances stalled at about 75%, however, ahead of the offer's December 15 closing date.
Under the termination deal, 42 Below will pay Panache $9.8 million (NZ$14.3 million). The founders of the company, Geoff Ross, Grant Baker and Steve Sinclair, will pay the remainder from their personal funds.
posted at 2:58 PM
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