News Alert: MGP To Acquire Luxco For $475 Million

MGP Ingredients has agreed to acquire St. Louis-based spirits producer and marketer Luxco for $475 million, comprised of equal parts cash and stock. For the 12-month period ended October 31, 2020, Luxco generated approximate net revenues of $202 million and 9-liter case volume of 4.8 million.

Luxco’s brand stable includes Ezra Brooks Bourbon Whiskey, Daviess County Straight Bourbon Whiskey, Yellowstone Bourbon Whiskey, El Mayor Tequila, and Everclear. MGP says the deal “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.”

“Luxco presents a unique opportunity to take a material step towards realizing our long-term strategy. It significantly expands our product line in the higher-value branded-spirits sector and increases our sales and distribution capabilities across all 50 states,” said David Colo, president and CEO of MGP Ingredients, Inc.

Luxco shareholders will receive aggregate cash consideration of $238 million, and 5.0 million shares of MGP common stock, valued at approximately $238 million. Luxco chairman and CEO Donn Lux will join MGP’s board of directors.

The transaction is anticipated to be completed during the first half of 2021, subject to regulatory approvals and customary closing conditions.—Daniel Marsteller

Tagged : Luxco, MGP Ingredients

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