24 January, 2001

Boizel won the battle of Lanson

A six month long war of nerves about the future of the 245 year old Lanson International is over. The much smaller Boizel Chanoine Champagne has swallowed the giant for a price of 122,7 million euros. Thus the final price landed rather far away from the 700 million euros, the main shareholder, Francois-Xavier Mora, initially asked for.

Boizel only had its comback in December after the favourite buyers, Franco-american investment group Butler Capital Partners and French contractor Jean-Claude Darmon, withdrew in the last minute. The original bid from Boizel was turned down by Lanson chairman, Francois-Xavier Mora.

Big debts and big stocks
With the deal Boizel takes over Lansons not inconsiderable debt of 400 million euros. However, 56 million bottles of champagne in Lansons basements count on the positive side.

Caisse d'Epargne triggered the sales in July as they wanted to sell their 44 percent of the Lanson-shares. The bank bought the shares in 2004 to help the until then completely family-owned business that did not have the available funds to pay winegrowers for their already delivered grapes.

New strategy around the corner
Three factors have made life expensive for Lanson. Through the nineties the company chose - against the strategy of other producers, unfortunately also against the trend - to aim at cheap champagne. A strategy that did not suceed.

The rising prices of grapes have made it very expensive for Lanson, that buys almost all grapes from little growers. Thus the company has not been able to make the most of its production capacity. So far.

"We do not come to speculate but to repair the machine, reintroduce and develop it," according to Bruno Paillard of Boizel to an edition of local newspaper l'Union in Middecember.

Reassuring words in troubled times, where the workers of Lanson have been on strike several times. After the sale they have so far remained quiet however "vigilant", they say according to l'Union.

Lanson International owns the brands Lanson, Besserat de Bellefon, Alfred Rothschild and Gauthier. On top of that a range of low price champagnes, that the buyers sell under their own names. With a early sale of 18 million bottles in 80 countries Lanson International is the thirdbiggest group in Champagne.

Boizel Chanoine Champagne already owns the brands Chanoine, Philipponnat, De Venoge and Alexandre Bonnet. Executive director Bruno Paillard on top of that owns Champagne Bruno Paillard, established in 1981 and the youngest of approximately 125 houses.

På dansk

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