MGP, an industrial level distillery out of Indiana known for being the whiskey source behind many popular American whiskey labels, has in its own in house stable a number of well regarded brands such as George Remus, Rossville Union and Remus Repeal Reserve. It has now added to these in a big way, acquiring branded beverage alcohol company Luxco.
The acquisition of Luxco by MGP, according to those behind it, will bring into the whiskey halls of the latter the likes of Ezra Brooks Bourbon Whiskey, Daviess County Straight Bourbon Whiskey, and Yellowstone Bourbon Whiskey, among others.
Specifics of the transaction are that “Luxco shareholders will receive aggregate cash consideration of $238 million, subject to customary adjustments for working capital, net indebtedness and transaction expenses. They will also receive 5.0 million shares of MGP common stock, valued at approximately $238 million based on a 20-day volume-weighted average price as of January 11, 2021.”
“There is a clear strategic fit between Luxco and MGP and I believe this transaction represents a great outcome for Luxco employees and customers,” said Donn Lux, chairman and CEO of Luxco, in a prepared statement. “I’m excited to continue my involvement with this blend of two well-positioned companies whose strong records of performance and commitment to excellence provide an attractive platform for continued growth.”
“Luxco presents a unique opportunity to take a material step towards realizing our long-term strategy,” added David Colo, president and CEO of MGP Ingredients, Inc. “It significantly expands our product line in the higher-value branded-spirits sector and increases our sales and distribution capabilities across all 50 states. We have enormous respect for the platform Luxco has built, and we’re excited to add its portfolio of fast-growing premium distilled spirits brands together with strong, cash-flow generating legacy brands.
“We welcome Donn and his family into the MGP shareholder base and look forward to growing together.”
Subject to regulatory approvals and customary closing conditions, the transaction is anticipated to be completed during the first half of 2021. There was no immediate mention of how the Luxco brands will be managed post completion of the acquisition.
New Isle Of Raasay Distillery Whisky Matured In Ex-Manzanilla Casks
Breckenridge Distillery Collaborates With Flaviar For Father’s Day Whiskey Edition
Royal Salute Celebrates Jodhpur Night With 21-Year-Old Jodhpur Polo Edition
GlenDronach Debuts Cask Strength Batch 12
Tales of the Cocktail Event Slated For Late July In New Orleans
Gavin Hastings Launches Charity Whiskies To Support Injured Rugby Players
Bladnoch Distillery Explores Whisky-Making With The Dragon Series
Jack Daniel’s Single Barrel Barrel Proof Rye Now A Permanent Offering
Emerson Whiskey Company Cuts Into Bourbon Market With New Product
Colorado Distilleries Collaborate On A Colorado Wheat Whiskey
Nino Kilgore-Marchetti is the founder and editor-in-chief of The Whiskey Wash, an award winning whiskey lifestyle website dedicated to informing and entertaining consumers about whisk(e)y on a global level. As a whisk(e)y journalist, expert and judge he has written about the subject extensively, been interviewed in various media outlets and...