Emperador Inc is set to spend GBP430m on Whyte & Mackay

Emperador Inc is set to spend GBP430m on Whyte & Mackay

Emperador Inc is set to acquire Scotch whisky producer Whyte & Mackay from Diageo-controlled United Spirits for GBP430m (US$729m).

The Philippines-based Brandy producer, which is owned by Alliance Global Group Inc, said today (9 May) that it will make the purchase, once it has secured regulatory approval in both India and the UK. Emperador confirmed earlier this week that it had opened discussions with United Spirits over a possible purchase.

The sale price equates to 19.3x Whyte & Mackay's EBITDA estimate for FY 2014. As part of the deal, Emperador has agreed to supply United Spirits with an unspecified amount of Scotch whisky for the next three years.

Andrew Tan, the chairman of Emperador, said: "With this acquisition, Emperador will be exposed to two of the fastest growing spirits segments in the World. We are continuously looking to enhance shareholder value through earnings-accretive investments."

Vijay Mallya, United Spirits' chairman, added: "I am delighted to be able to pass on Whyte & Mackay into the hands of a new owner who is committed to realising the full potential of the business."

The announcement comes six months after Diageo, which is the biggest shareholder in United Spirits, said it would sell the bulk of Whyte & Mackay to satisfy competition concerns in the UK. Diageo has hoped to keep hold of the unit's Dalmore and Tamnavulin distilleries.

When contacted by just-drinks, a spokesperson for Diageo declined to comment further on the matter.

United Spirits was advised in the transaction by Rothschild, Standard Chartered Bank and Rabobank.

To read the official statement from United Spirits, click here.

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