Senior managers throughout the Allied Domecq and Pernod Ricard empires have been warned to brace themselves for a shake up involving potential job losses if the latter’s acquisition of its rival this week goes through to completion.
Speaking after Pernod Ricard’s £7.4bn offer was accepted by Allied Domecq, Pernod Ricard chairman and CEO Patrick Ricard said: “It is likely we will add and lose some senior management staff. But we will need some of the expertise of Allied Domecq.”
But he said many jobs would be safeguarded by the agreement of its buyout partner, US-based Fortune Brands, to take control of three distribution and production networks in the UK, Spain and Germany.
Richard Burrows, joint MD of Pernod Ricard, said buyers should be excited by the deal. “What we did with Martel and Chivas Regal shows we can refresh and invigorate brands.”
Pernod’s offer, which still had to be approved by shareholders as The Grocer went to press, is 80% cash with the remainder made up of Pernod Ricard shares. Fortune Brands is set to take control of assets worth £2.8bn, including Canadian Club, Courvoisier and Maker’s Mark.
Pernod Ricard will hold on to much of the core spirits and wine brands including Ballantine’s, Beefeater, Malibu and Montana.
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