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
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...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
Projects in Progress - Second Edition (PDF Report)
Creamer Media’s second Projects in Progress supplement considers some of the major project developments under way, including high-profile energy and transport projects, as well as a few of the lower-profile public and private developments. What remains apparent is...
Water 2013: A review of South Africa’s water sector (PDF Report)
Creamer Media’s Water 2013 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Canadian Mining Roundup for June 2013 (PDF Report)
The June 2013 roundup includes details of the development of TSX-V-listed Aldridge Minerals’ flagship Yenipazar polymetallic project, in Turkey; the Canadian Nuclear Safety Commission’s renewal of Cameco’s uranium mining licence pertaining to the Cigar Lake...
This Week's Magazine
Updated 1 hour 3 minutes ago Johannesburg-based locomotive solutions provider DCD Rolling Stock officially launched Phase 1 of its R240-million recapitalisation programme at its Boksburg manufacturing facility, last month.
Updated 1 hour 3 minutes ago Sales of electric cars should pick up once more such vehicles become available on the South African market, says Nissan South Africa (SA) chief marketing manager Ross Garvie. The local arm of the Japanese car company launched the country’s first fully electric...
Updated 1 hour 3 minutes ago Denel Land Systems’ (DLS) Mechem division is successfully marketing the latest version of its highly regarded Casspir mine-protected vehicle, the Casspir NG2000 series wide body ambulance. As its description says, this has a notably wider body than standard...
Updated 1 hour 3 minutes ago The infrastructure boom in Africa has seen investment in 322 megaprojects reach $222.7-billion, says professional services firm Deloitte in its ‘African Construction Trends’ report. Deloitte Southern Africa infrastructure and capital projects leader André Pottas...
Updated 1 hour 3 minutes ago ASME, the international engineering profession’s cooperative, educational and training, research, outreach and codes and standards development organisation (originally the American Society for Mechanical Engineers, founded in 1880), is seeking to improve the...