Ireland-based alcoholic drinks firm C&C Group has agreed to acquire Gleeson Group, an Ireland-based manufacturer and distributor of water, soft drinks, freeze pops, wine, spirits, beer and cider.

The acquisition, which is valued at €12.4m, includes purchase of MJ Gleeson Investments and its subsidiaries.

The successful acquisition will provide C&C with a well managed logistics network, a skilled workforce and distinct trading expertise using which the group can expand its business in Ireland by enhancing its trading strategy, diversifying its revenues and improving its growth prospects.

C&C CEO Stephen Glancey said the acquisition will help them expand their distribution network in Ireland and create an attractive, multi-beverage brand platform.

"Over the past 3 years, we have progressively diversified the Group’s brand portfolio in Ireland from the single premium cider brand Bulmers to a broader LAD range including Tennent’s, Caledonia Smooth and a number of beer agency brands," Glancey added.

"The acquisition of the Gleeson Group accelerates the re-shaping and diversification of C&C in Ireland. The extended portfolio and direct distribution network should create a more resilient trading model that is better suited to dealing with the challenges of both current and future trading environments. It is a model that has the potential to deliver growth through investment, further brand acquisition and new agency agreements.

"This transaction provides us with the opportunity to significantly strengthen our Irish business and will create value for our customers, suppliers and shareholders."

The Gleeson acquisition is conditional upon clearance by the Irish Competition Authority and is expected to be completed before the end of the group’s financial year.