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06/2023

ACE BEVERAGE GROUP acquired by PERNOD RICARD

CANADA Food Processing / Beverages / Wines & Spirits EV 100M - 350M CAD

Context

Pernod Ricard, through its Canadian subsidiary Corby Spirit and Wine, acquired a 90% stake in Ace Beverage Group, with a clear path to 100% ownership via two call options exercisable in 2025 and 2028. The transaction is structured as a majority‑stake bolt‑on designed to position Corby as a leading force in the Canadian RTD category, where Ace Beverage Group is already the largest independent operator and a pure‑play RTD platform. Created via the 2020 combination of Cottage Springs and Ace Hill, ABG has built a strong presence around its flagship brand Cottage Springs, which leads the Ontario RTD market with iconic products such as Vodka Soda, Vodka Water, and Tequila Soda, while also offering a secondary portfolio of brands like Ace Hill, Cabana Coast, and Liberty Village. The Canadian RTD segment has been one of the fastest‑growing sub‑categories in beverage alcohol, with above‑20% annual growth between 2016 and 2021 and an expected continuation of double‑digit growth in coming years, driven by demand for convenience, low‑sugar formulations, and on‑trend flavor profiles.

ACE BEVERAGE GROUP, which reported an EBITDA margin of in 2023, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the AgriFood sector (11.0x).

-> Deep-dive in AgriFood market trends

Target

Ace Beverage Group is a Canada‑based beverage company specializing in the development, production, and distribution of alcoholic ready‑to‑drink (RTD) products. Created in 2020 through the merger of Cottage Springs and Ace Hill, the group has rapidly emerged as the largest independent player in the fast‑growing Canadian RTD market. The portfolio is anchored by Cottage Springs, the leading RTD brand in Ontario, with core products including Cottage Springs Vodka Soda, Vodka Water, and Tequila Soda, which are positioned as premium, low‑sugar, and mix‑ready formats for on‑trade and off‑trade channels. The group also owns and operates additional brands such as Ace Hill, Cabana Coast, and Liberty Village, creating a diversified chain of differentiated RTD propositions across flavors, spirits bases, and target occasions. The Canadian RTD category has grown at a double‑digit pace over recent years and is expected to maintain strong momentum, benefiting from evolving consumer preferences for convenient, pre‑mixed, and transparently formulated alcohol formats.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (CAD)

Year
Rev
EBITDA
EBIT
2023
2022

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REFERENCES

Valuation range: EV 100M - 350M CAD

Revenue range: 50M - 100M CAD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ACE BEVERAGE GROUP by PERNOD RICARD are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: ace beverage group

Acquirer: pernod ricard