C&C Group Shares Advance Most in Month on Hornsby’s Acquisition

C&C Group Plc (GCC) rose the most in a month in Dublin trading after saying it acquired Hornsby’s, the second-largest cider maker in the U.S., for as much as 20 million euros ($28 million).

C&C rose as much as 4.1 percent in Dublin to 3.05 euros, the biggest intraday gain since Oct. 6. It traded at 3.0525 euros at 3:10 p.m. The purchase makes C&C the second largest cider company in the U.S. with an estimated 20 percent share, according to a regulatory statement.

“We think we can rejuvenate the brand, and basically tap into a huge growth market with massive potential,” said Chief Executive Officer Stephen Glancey in a telephone interview today. The consumer environment remains “challenging” Glancey said, maintaining C&C’s full-year operating profit guidance of 108 million euros to 115 million euros.

C&C is betting on international cider sales, including in the U.S., where the cider market is growing at about 26 percent a year, Glancey said. Hornsby’s, primarily a west coast off- trade brand in the U.S., sold 61,000 hectolitres in 2010 with net revenue of $11.7 million, according to today’s statement. C&C sold 45,000 hectoliters of its Magners cider brand in the U.S. in the year ended Feb. 2011, mainly in the east coast.

If U.S. cider consumption rose to between 1 and 2 million hectoliters in five years, that would be “huge,” according to Kenny Neison, C&C’s chief financial officer.

About 10 million hectoliters of cider a year is consumed in the U.K., said Glancey.

To contact the reporter on this story: Finbarr Flynn in Dublin at fflynn3@bloomberg.net;

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.