Luxco, the privately-owned US spirits producer, is to acquire a 50% stake in craft distiller Limestone Branch. 

In a statement yesterday, Luxco said the Kentucky-based distiller will be operated “jointly” by the two firms under the terms of the deal. Financial details of the proposed transaction were not disclosed. 

As part of the agreement, Luxco said it will transfer its Yellowstone Bourbon brand to a new joint venture. Limestone Branch also plans to develop other “hand-crafted spirits” and will continue to produce its white spirit products.

Luxco will be the administrative and sales arm for the JV, representing the products developed by Limestone Branch in “select” markets, the companies said. 

Stephen Beam will continue as Limestone Branch's president and master distiller. Beam said: "To be able to have Donn Lux and his team at Luxco help take our distillery to the next level is a fantastic opportunity for all of us." 

Donn Lux, Luxco's chairman, added: "We have been striving for some time to enter the craft Bourbon market with a truly authentic story and product. 

“We have a shared vision, not only of the Yellowstone brand, but of the business in its entirety.”

Luxco's last major deal was early last year, when it acquired a number of budget spirit brands from Beam Inc for US$65m.