Johannesburg - The Distell Group [JSE:DST] said on Monday
it has entered into agreements to acquire Scotch whisky producer Burn Stewart
Payment will consist of an initial $229m
and a contingent consideration of up to $15m.
Burn Stewart is a fully integrated Scotch
whisky producer‚ which owns three malt whisky distilleries and a strong
portfolio of Scotch whisky brands. Its principal activities are the marketing
of a proprietary range of blended and single malt whiskies internationally‚ the
sale of bulk whisky and the supply of "own label" brands to
Its core blended whisky brands include
Scottish Leader and Black Bottle‚ with the single malts portfolio consisting of
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‚ with a total of 6.7 million
litres of alcohol annual distilling capacity.
Burn Stewart also operates a sales and
marketing branch in Taiwan and is a Joint Venture partner with Distell in
According to the Scotch Whisky Association‚ in 2012‚ Scotch whisky exports hit a record £4.3bn‚ an increase of 87% in the
last 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
The acquisition of Burn Stewart provides
Distell access to this highly attractive and growing category.
Distell believes that the acquisition fills
a category gap in its portfolio and will allow it to offer its 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 industry player.
The closing of the sale took place on April
12 2013. Distell will finance the acquisition out of available resources.
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