South Africa’s wine and spirits marketer, Distell, on Monday said it acquired United Kingdom-based Scotch whisky producer Burn Stewart, for $244 million.
Distell said this acquisition would provide it with entry into the highly-attractive and growing whisky market in the emerging and developed world.
Last year, according to the Scotch Whisky Association (SWA), Scotch whisky exports reached a record $6.58 billion, which represents an 87 percent surge in the last 10 years.
Single malt exports have shot up 190 percent over the same period from $410 million to $1.2 billion.
In 2012, an increasing demand for Scotch whisky has seen the value of exports surge for the eighth consecutive year, according to SWA.
Distell is of the view that the acquisition of Burn Stewart will fill a category gap in its portfolio, letting it to offer its clients an even broader range of products.
Burn Stewart’s strong presence in the UK, Taiwan and other countries will give Distell a more stable sales platform and route-to-market prospects.
In terms of the transaction, Distell will acquire 100 percent of the share capital of Burn Stewart from CL World Brands (CLWB) and Angostura Limited.
Distell will keep the Burn Stewart Managing Director and senior executive management.
The first sum will be paid in hard cash to CLWB and Angostura within 12 months of the closing of the deal.
The closing of the sale took place last Friday. Distell will fund the acquisition out of available resources.
Burn Stewart owns three malt whisky distilleries and a strong portfolio of Scotch whisky brands.
Its core blended whisky brands include Scottish Leader and Black Bottle, with the single malts portfolio consisting of Bunnahabhain, Tobermory, Deanston and Ledaig.
It owns and operates three malt distilleries. These are Bunnahabhain (situated on the Isle of Islay), Tobermory (situated on the Isle of Mull) and Deanston (Doune, near Stirling).
These have a distilling capacity totalling 6.7 million liters of alcohol annually.
Burn Stewart also operates a sales and marketing branch in Taiwan and is a joint venture partner with Distell in sub-Saharan Africa.
