Sale and cash call to reduce Pernod debt

French drinks giant Pernod Ricard today agreed the sale of its Wild Turkey Kentucky bourbon brand to Italy's Campari for $575 million (£392 million), and also said it plans a 1 billion (£898 million) rights issue.

Both moves aim to reduce Pernod's debt, which soared with last year's 5.7 billion takeover of Absolut vodka maker Vin & Spirit.

That took debt up to about six times earnings, and chief executive Pierre Pringuet said in February that he wanted to get it down to "close to" four times earnings by June 2011. At the same time, he forecast double-digit full-year profit growth to a record 1 billion.

Wild Turkey, which sells more than 800,000 cases a year, is Campari's largest-ever acquisition. It means two-thirds of group sales will come from outside Italy.

"With Wild Turkey, Campari adds a brand of strategic relevance to its portfolio and further enhances its premium offering," said Campari chief executive Bob Kunze-Concewit.