The US drinks producer and distributer MGP, has announced that it is to acquire Luxco, the parent company of American whiskey brands including Rebel Yell and Ezra Brooks, for $475 million.
This transaction will immediately increase MGP’s scale and market position in the branded-spirits sector and strengthen its platform for future growth of higher value-added products.
|MGP announces $475m acquisition of Luxco|
Luxco, which opened its Lux Row Distillery in Kentucky in 2018, will provide MGP with an established platform of extensive operational capabilities and a comprehensive international sales footprint with an attractive portfolio of brands.
Commenting on the news, Donn Lux, Chairman and CEO of Luxco, said: “There is a clear strategic fit between Luxco and MGP and I believe this transaction represents a great outcome for Luxco employees and customers. 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.”
Under the terms of the agreement, Luxco shareholders will receive $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.
Posted by Steve Rush