Lion has announced it intends to start a sale process for Lion Dairy & Drinks (LDD).
Lion CEO Stuart Irvine said: “Following careful consideration, we believe a sale of LDD is the best option to set both Lion and LDD up with the capital and resources needed to grow into the future.
“Following the turnaround program, LDD has been transformed and now has a sound platform for future growth. It’s clear from the further work done in recent weeks that LDD’s strategy to more fully leverage growing consumer-wellness trends will require new capabilities and capital investment. The sale process will focus on finding the right owner to take LDD forward and unlock its full potential.”
Lion says it has decided to sell LDD to raise capital to invest in its remaining business. It has “a number of avenues for growth available”, it said in a statement.
“Our Lion Global Markets (LGM) business has made great progress with Little Creatures now available in 30 global cities, the acquisition of the Fourpure craft-beer brand in the UK, and continued growth in our fine-wine business in North America. We intend to back LGM to explore further opportunities in high-growth craft-beer markets worldwide.”
Lion says it has simultaneously worked to build a portfolio of “premium, crafted non-alcohol beverages alongside its core beer brands”. The company says it will continue to pursue opportunities in growing categories, both alcoholic and non-alcoholic.
The sale process will start immediately. Deutsche Bank will coordinate the sale, with King & Wood Mallesons as legal advisor. Greenhill & Co Australia will be the independent financial adviser.