Pernod Ricard has sold the Tia Maria coffee liqueur brand to Illva Saronno for E.125m ($178.5m) on a cash free/debt free basis with the transaction completed and monies paid simultaneously on July 27, 2009.

The liquor company says that the sale of Tia Maria, together with other disposals completed since the acquisition of Vin & Sprit in July 2008, enables Pernod Ricard to continue its debt reduction programme having achieved disposals totalling in excess of E.700m ($1bn).

As part of the transaction Chivas Brothers Limited has been appointed to produce Tia Maria for Illva Saronno and arrangements have been made for short term transitional distribution services to be provided by Pernod Ricard affiliates. Some longer term distribution agreements will also be entered into in certain markets and Pernod Ricard Argentina has been appointed to produce and distribute the brand in Argentina.