Gruppo Campari has signed an agreement to divest its Carolans and Irish Mist assets to Heaven Hill Brands through the sale of all its equity in subsidiary TJ Carolan & Son.

The deal is valued at $165m on a cash-free / debt-free basis.

Gruppo Campari CEO Bob Kunze-Concewitz said: “The sale of Carolans and Irish Mist is the largest disposal ever completed by the Group. We are very pleased to sign this transaction with Heaven Hill, a prominent spirits company in the US and a perfect fit for Carolans and Irish Mist.

“With this transaction, we continue to streamline our non-strategic portfolio and further increase our focus on our priority spirit brands, particularly in our largest and core US market. Moreover, thanks to this disposal, we can further accelerate in the reduction of our financial indebtedness.

"Since the beginning of 2016, we have divested non-strategic assets for a total value of approximately €260 million.”

"Since the beginning of 2016, we have divested non-strategic assets for a total value of approximately €260 million."

Heaven Hill Brands president Max L Shapira said: “We are delighted to have worked with Gruppo Campari on this acquisition. Carolans and Irish Mist are great historic brands that are highly complementary to our broad portfolio of leading brands. We look forward to building on the strong success these brands have achieved both in the US and around the world.”

Carolans and Irish Mist reported total net sales of €34m in the fiscal year ended 31 December 2016. The brands’ sales represented approximately 2% of Gruppo Campari's net sales in that year.

The deal is expected to close on 1 August.

Gruppo Campari bought Carolans and Irish Mist in 2010 as part of a larger portfolio acquisition that included Frangelico.

Carolans is produced in Ireland from Irish ingredients including fresh cream, honey, and Irish whiskey. Irish Mist Liqueur is a blend of Irish whiskey, honey, and natural aromatic spices.

Heaven Hill Brands is a distilled spirits company based in Bardstown, Kentucky.