Distell buys whisky distiller for R2,2bn
Distell Group has bought Burn Stewart Distillers from CL World Brands and Angostura for US$244m.
Burn Stewart is a fully integrated Scotch whisky producer‚ which owns three malt whisky distilleries and a strong portfolio of whisky brands. Its principal activities are the marketing of a proprietary range of blended and single malt whiskies‚ 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 comprising 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. The distelleries are capable of producing 6.7m litres of alcohol.
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, exports ofd whisky reached £4.3bn last year‚ representing an increase of 87% in exports 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.
Distell says the acquisition of Burn Stewart provides it with access to this highly attractive and growing category of alcoholic beverages.
it says the purcahse "fills a category gap in its portfolio" and will allow it to offer customers an even broader range of products.
Burn Stewart's strong presence in the United Kingdom‚ 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 supplier.
The total price of US$244m for Burn Stewart comprises an initial payment of US$229m and a contingent payment of up to US$15m. It will be financed from Distell's own resources.
Source: I-Net Bridge
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