Acquisitions

6 Months Ended

Oct. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combination Disclosure

Acquisitions

On November 3, 2022, we acquired 100% of the equity interests of Gin Mare Brand, S.L.U. and Mareliquid Vantguard, S.L.U. Through this transaction, we obtained 100% of the intellectual property rights to Gin Mare, which was the largest ultra-premium gin brand in the world in 2021 according to International Wine & Spirit Research (IWSR). The price of the acquisition consists of €475 million in cash paid at the acquisition date plus contingent future cash payments of up to €90 million under an “earn-out” provision of the acquisition agreement.

We are currently in the process of finalizing the accounting for this transaction and expect to complete our preliminary allocation of the purchase price during the third quarter of fiscal 2023.

Also, on October 6, 2022, we agreed to purchase the Diplomático Rum brand and related assets from Destillers United Group S.L. and Destilerias Unidas Corp. The Diplomático Rum family of brands was the largest super- and ultra-premium rum in the world in 2021 according to IWSR. The price of the acquisition will consist of $725 million (subject to certain adjustments) in cash to be paid to the sellers at the closing date. In addition, we have agreed to pay up to $50 million of certain post-closing costs and expenses in connection with the acquisition. We expect the transaction, which is subject to customary closing conditions, to close during the third quarter of fiscal 2023.

Because these acquisitions had not closed by October 31, 2022, they are not reflected in the accompanying financial statements.