MILAN, June 26 (Reuters) - Italian spirits group Campari

has agreed to sell its historic Cinzano vermouth and

its Frattina grappa brands to domestic rival Caffo Group 1915

for 100 million euros ($117 million), it said on Thursday.

Founded in 1757, Cinzano, consumed mainly as an aperitif,

was bought by Campari in 1999, while Frattina is a more recent

acquisition, part of a deal from 2014.

New Campari CEO Simon Hunt, who took charge in January,

said the sale "marks a key step in our strategy of streamlining

our portfolio via disposals, allowing us to increase our

commercial and marketing focus on our key core brands."

Both Cinzano and Frattina also include sparkling wine

production alongside the vermouth and grappa which the two

brands, respectively, are famous for.

In 2024 Cinzano and Frattina accounted for 2% of Campari's

overall net sales, with the two brands totalling a net 75

million euros.

The closing of the transaction is expected by the end of

2025. Mediobanca acted as financial advisor on the deal.

($1 = 0.8550 euros)