DISTELL has bought Burn Stewart Distillers from CL World Brands and Angostura for $244m.
Burn Stewart is a fully integrated Scotch whisky producer, which owns three malt whisky distilleries and a strong portfolio of Scotch whisky brands. Its principal activities are the marketing of a proprietary range of blended and single malt whiskies internationally, the sale of bulk whisky and the supply of “own label” brands to retailers.
Its core blended whisky brands include Scottish Leader and Black Bottle, with the single malts portfolio consisting of Bunnahabhain, Tobermory, Deanston and Ledaig.
Burn Stewart owns and operates three malt distilleries: Bunnahabhain on the Isle of Islay, Tobermory on the Isle of Mull and Deanston in Doune, near Stirling in Scotland, with a total of 6.7-million litres of alcohol annual distilling capacity.
Burn Stewart also operates a sales and marketing branch in Taiwan and is a joint venture partner with Distell in sub-Saharan Africa.
According to the Scotch Whisky Association, Scotch whisky exports hit a record £4.3bn in 2012, an increase of 87% in the past 10 years.
Single malt exports have risen over the same period by 190%, from £268m to £778m.
Rising demand for Scotch whisky from both mature and emerging markets saw the value of exports grow for the eighth consecutive year.
The acquisition of Burn Stewart provides Distell access to this highly attractive and growing category.
Distell believes the acquisition fills a category gap in its portfolio and will allow it to offer its customers an even broader range of products.
Burn Stewart’s strong presence in the UK, Taiwan and other countries provides Distell with enhanced sales platforms and route-to-market opportunities.
Following the acquisition of Bisquit Cognac in 2009, Burn Stewart is another important step in establishing Distell as a global industry player.
The total purchase consideration for the acquisition of Burn Stewart is a maximum of $244m, consisting of an initial payment of $229m and a contingent consideration of up to $15m.
The closing of the sale took place on Friday. Distell will finance the acquisition out of available resources.
Source: Yahoo News
https://za.news.yahoo.com/distell-buys-burn-stewart-distillers-084539717–finance.html