Cooley expected to be sold for €31m to Angostura

Irish whiskey company Cooley Distillery is on the verge of being sold for around €31 million to Trinidad and Tobago-based distiller Angostura.

Cooley chairman Dr John Teeling said that, while no formal offer had been made for the group, due diligence had been completed and he expected "some kind of offer" from Angostura before Cooley's annual general meeting on Monday.

Dr Teeling, "along with family and associates", holds a 20 per cent stake in the group and will pocket just over €6 million if the sale goes ahead.

There is a possibility that he will not receive the money immediately. The sale will see the current board and management of the company remain in place for the foreseeable future.

As part of this arrangement, Dr Teeling's new contract may contain clauses prohibiting him realising the full value of his stake immediately.

The board of directors of Cooley collectively hold a 50 per cent stake in the company. Apart from Dr Teeling, they are: managing director Mr David Hynes; finance director Mr James Finn; Mr Paul Power, formerly of Fitzwilton and Novum; Mr William McCarter, chairman of the International Fund for Ireland; and Mr Lee Mallaghan, owner of Carton House near Maynooth, Co Kildare.

Cooley has been in talks with Angostura for a number of months. Originally it was envisaged that the Caribbean group would enter a strategic alliance with Cooley by taking a share of the company and then using its global marketing and distribution strength to sell Cooley whiskey around the world.

But Dr Teeling yesterday confirmed the Trinidad and Tobago group now wanted to buy Cooley outright.

An offer is expected for Cooley as early as today and, if, as expected, it is around the €31 million at which Dr Teeling values the company, it is understood it will be accepted.

Cooley currently sells three million bottles of whiskey per year. Dr Teeling maintains this will double by 2007 once Angostura comes on board. He said Angostura was very strong in Europe - particularly Spain - as well as in the Americas and Middle East.

"What this is about is giving us the means to expand while also offering shareholders an exit if they wish," he said.

He added Angostura was also interested in expanding further into the European market and the acquisition of Cooley would fit that strategy.

Cooley has the ability to produce around 14 million bottles of whiskey per year. At present, it is using only about a quarter of its grain capacity.

Sales at the 14-year-old company have been stifled in recent years because of the significant costs required to launch an international distribution network and marketing programme. The board hopes that a takeover by Angostura would see those obstacles dissipate.

Angostura has been distributing Cooley in France for three years. It is most famous for its range of "aromatic bitters" but is also the world's fifth-largest rum producer.Last year, its turnover was $1.3 billion (€1.33 billion).