The deal will initially be financed in full through an up to 24-month bridge loan provided by a group of banks. Campari will then use a mix of cash, equity and debt to fund the purchase.

Campari is securing a top four cognac house globally at a time when demand in Courvoisier's biggest market, the United States, has fallen from post-COVID peaks and wholesalers are de-stocking. The company is betting on its ability to relaunch the brand as it has done before with other acquisitions.

Announcing the purchase late on Thursday, Campari said Courvoisier would boost group sales by 9% and eventually increase its earnings per share by 2%.

In the short term, however, the latest addition to Campari's long list of acquisitions will hurt the group's gross profit margin because Courvoisier is less profitable than the rest of Campari's brand portfolio.

Campari said it was confident that its marketing skills would "re-establish Courvoisier as a global icon of luxury", as cognac became the fourth largest leg of its business after aperitifs, bourbon and tequila.

(Reporting by Valentina Za, editing by Giulia Segreti and Sharon Singleton)