The Italian alcohol giant Gruppo Campari is buying the French producer of Grand Marnier liqueur.
Campari said the new acquisition will allow it to take advantage of "the revival of classic cocktails, particularly in the U.S."
Campari is a bittersweet red aperitif used to make popular cocktails like the Negroni. Grand Marnier, an orange flavored liqueur made from cognac brandy and sugar, is used in cocktails such the Cadillac Margarita, a B-52, and a Cosmopolitan. It's also a popular ingredient in desserts.
The Italian company said in a statement it has an agreement to buy a 17 percent stake in the family-controlled Societe des Produits Marnier Lapostolle for 8.05 euros a share, a 60 percent premium on Friday's closing price. The deal values the French company at 684 million euros ($760 million).
Campari, the sixth-largest premium spirits maker, has been growing both organically and through acquisitions of brands like Wild Turkey and Skyy vodka. Still, Campari remains a niche player in a sector dominated by giants like Diageo and Pernod Ricard.
If you're a cocktail lover looking to really celebrate the merger of these popular spirits, check out this recipe for a Campari collins-- a sweet citrus sipper with Grand Marnier.
The Associated Press contributed to this report.