Feragaia has sold a majority stake in its non-alcoholic spirits business to Scottish luxury goods group Chanrossa, the owner of Isle of Raasay whisky.
Financial details of the transaction were not disclosed.
As part of the sale, Feragaia will join R&B Distillers, Chanrossa's spirits and drinks business which produces Isle of Raasay whisky and gin in western Scotland.
According to a joint statement from both companies, the cash injection will help Feragaia scale production and expand around the world.
Set up in 2019 by James Wild and Bill Garnock, Feragaia launched its 0.0% distillery in Glenrothes, Fife, Scotland three years ago. Its main product is its namesake bottled 0.0% spirit.
Both companies said: "The two brands align in offering a progressive drinking experience to the modern, discerning consumer".
Commenting on the news, William Dobbie, managing director at R&B Distillers said: "We are extremely excited to add Feragaia to our portfolio and continue towards our goal of creating Scotland’s leading new wave spirits and drinks business.
"Our brands are all about creating a more progressive and inclusive drinking experience across categories, while delivering supreme quality on every occasion. By adding Feragaia, whose values align perfectly with ours, we enhance our portfolio of likeminded brands and accelerate our bold, global growth plans.
“We’re excited to work with Jamie and Bill to grow Feragaia’s footprint in the UK and beyond and strengthen Scotland’s reputation for innovation in spirits – both alcoholic and alcohol-free.“
Following Chanrossa's takeover, Feragaia's co-founders will continue to be "fully involved shareholders" in the group, the joint statement read.
The 0.0% spirit brand will still be distributed by Cask Liquid Marketing in the UK until the end of January.
Chanrossa's spirits and drinks division also includes whisky bottling and ecommerce business Caskshare, and distillery management system MasterDistiller.
The Edinburgh-headquartered group is also in the process of building a new single malt Scotch distillery called Machrihanish in Campbeltown, western Scotland.
Aside from spirits, Chanrossa also has a presence in beauty and wellness.
