CVC-affiliated funds will buy London-listed Stock Spirits (STCK.L) for about $1 billion, as the private equity firm looks to tap the popularity of its booze among millennials and women in central and eastern Europe.

The takeover offer by CVC Capital Partners-affiliated funds of 377 pence per share for Stock Spirits represents a premium of 41% to the stock’s close on Wednesday. The proposal values Stock Spirits at 767 million pounds ($1.06 billion). Shares in the company jumped 42.7% to 382.5 pence by 0725 GMT.

The agreement is the latest example of dealmaking involving private equity firms and UK-listed groups, whose valuations are relatively cheaper compared to U.S. companies.

“Stock Spirits benefits from a portfolio of established brands trading in key segments of the market and a strong track record of product innovation,” a statement from the two parties said.

For CVC, the deal is yet another focused on central and eastern Europe, where it has been a long-standing investor.

Read more/Source: Reuters