News about E&A Scheer


I’m not that interested in economics, investor firms and the bigger picture myself. But this article might interest some of you, so here it is:


would be interesting to know the EBIT multiple they got and the deal size


Both Riverside and Platinum are private companies, so little to no chance I would say. But I am curious like you as well.


Yes I would certainly be interested! Very smart move, buy an existing established business at the right time in 2019 when the premium rum market was really starting to get going due to all the indies popping up, modernise it, double its EBITDA and then sell it off 4 years later with an agressive growth target for the new buyer to get excited about (ultimately with thanks to us Crazy rum fans for spending our hard earned :laughing: ) for what I imagine would be a very healthy multiple! Would it be 5-8 do you think or more?


well, I would agree the multiple range to be within that area, on the upper scale, maybe even a 10.
Fancy businesses (not Rum traders), depending on industry, would still be able to reach a 15+, what speaks for a deal on the higher side of the range is the strong growth in both earnings and revenues, the niche market that is possibly still in the earlier stage of the hype and the success of the peer group members such as LVMH, Pernod Ricard, Remy Cointreau with PE Ratios of 16 - 26


Wow there must be money in booze! 15+ would be a pretty amazing result, in my books anyway😄


From the little things that I understand from this conversation: that rum importer gig is starting to sound better and better :joy: