PHILIPPINES/INDIA: Emperador to acquire Whyte & Mackay
Emperador Inc is set to spend GBP430m on Whyte & Mackay
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.
Another day, another drinks executive stepping down "to explore new opportunities". Usually, this is code for "is leaving to join one of our competitors in a slightly better-paid position". But, with ...
There was a surprise twist to talk this weekend that Diageo was looking to divest one of its alcohol categories. For once, the rumours concerned its wine portfolio and not its beer brands....
- Key trends for the alcohol category in 2017
- Key trends for the beer category in 2017 - Focus
- Interview Berry Bros & Rudd CEO Dan Jago - Part I
- The threat of excess choice in beer is over-stated
- Key trends for the spirits sector in 2017 - Focus
- Beam Suntory revamps Bowmore whisky packaging
- Bacardi lines up Canadian bottling plant closure
- Pernod unveils new St Patrick's Day Jameson bottle
- Asahi Group lifts 2016 sales, profits
- Brown-Forman launches brand nutrition website
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Cognac insights - market forecasts, product innovation and consumer trends