Apr 15, 2013
Distell buys international whisky distilleries for $244mBack
Glasgow|Islay|Angostura|Burn Stewart|CL World Brands|Distell|Scotland|Taiwan|Trinidad|United Kingdom|USD|Alcoholic Beverage Producer|Whisky Producer|Isle Of Islay-based Bunnahabhain|Isle Of Mull|Maryland|Caribbean|Sub-Saharan Africa
© Reuse this
The deal would see the JSE-listed group take over three Scotland-based malt whisky distilleries – Tobermory, located on the Isle of Mull; the Isle of Islay-based Bunnahabhain; and Deanston, in Doune, near Stirling – producing a total of 6.7-million litres a year of alcohol.
The Glasgow-headquartered Burn Stewart, which maintained a strong portfolio of blended and single malt whiskey brands, also had a branch in Taiwan and had partnered with Distell in a joint venture operation in sub-Saharan Africa.
“Burn Stewart’s strong presence in the UK, Taiwan and other countries provides Distell with enhanced sales platforms and route-to-market opportunities,” the company said in a statement on Monday.
The acquisition also filled a “category gap” in the South African group’s portfolio and would provide access to a “highly attractive” sector, the company explained, citing the growing demand for Scotch whiskey.
Over the past decade, Scotch whisky exports rose 87%, reaching £4.3-billion, while single malt exports jumped 190% from £268-million to £778-million.
“Rising demand for Scotch whisky from both mature and emerging markets saw the value of exports grow for the eighth consecutive year,” Distell commented.
The South African company said it would retain Burn Stewart’s MD and senior executive management. Burn Stewart would also continue to bottle and distribute for the Caribbean-based rum producer Angostura.
Distell released an initial payment of $229-million on April 12 and a contingent amount of $15-million would be payable in cash in the next year, subject to Burn Stewart achieving the agreed requisite earnings before interest, tax, depreciation and amortisation.
CLWB parent company, Trinidad-based CL Financial, would appoint two directors to the board of Burn Stewart for the duration of the contingent consideration, Distell noted.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
Updated 1 hour 20 minutes ago Celebrating its fiftieth Green Star SA certification in only six years, and with a further 150 projects in the Green Star SA registration pipeline, the impact will increase significantly. “In South Africa, certified new green buildings now cover nearly one-million...
Updated 1 hour 23 minutes ago Volkswagen Group South Africa (VWSA) has installed an automated guided vehicle (AGV) line to replace the traditional roller conveyor used on the VW250 engine line. An AGV is a mobile robot that follows markers or cabling in the floor, or uses vision or lasers to...
Updated 1 hour 23 minutes ago South Africa has an opportunity to achieve a similar result to that of China, which has lifted hundreds of millions of its citizens from poverty to prosperity, but the challenge is to develop world-class customer-focused engineers.
Updated 1 hour 23 minutes ago South Africa had more than enough money and resources to deliver on the constitutional promise of quality of life for all, but those involved in corruption have cost the country immensely.
Updated 1 hour 23 minutes ago BMW South Africa has postponed the introduction of the i3 city car and i8 supercar to March 2015, says spokesperson Edward Makwana. The i3 is an electric vehicle, and the i8 a plug-in hybrid. Both models were scheduled for local introduction this year.