Tuesday, January 26, 2021

MGP ANNOUNCES $475M ACQUISITION OF LUXCO

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