US – MGP Ingredients, a supplier of distilled spirits and specialty wheat proteins and starches, has agreed to acquire US alcohol producer and marketer Luxco and its affiliated companies in a $475 million deal.
In a statement, MGP said that the acquisition – comprised of equal parts cash and stock – will increase its scale and boost its market position in the branded spirits sector.
Luxco is a producer, supplier, importer and bottler of beverage alcohol products, with a portfolio of brands that includes Ezra Brooks, Daviess County, Yellowstone, El Mayor and Everclear.
Founded in 1958 in St. Louis, Missouri, the company remains locally owned and operated by the Lux family.
The company also owns or controls a stake in distilleries including Lux Row Distillers and Limestone Branch Distillery.
“Luxco presents a unique opportunity to take a material step towards realising our long-term strategy. It significantly expands our product line in the higher-value branded spirits sector and increases our sales and distribution capabilities across all 50 states,” said David Colo, president and CEO of MGP Ingredients.
“We have enormous respect for the platform Luxco has built, and we’re excited to add its portfolio of fast-growing premium distilled spirits brands together with strong, cash-flow generating legacy brands,” Colo added.
Luxco’s acquisition follows the appointment of Matt Greeno to the newly created position of Lead Master Distiller at MGP Ingredients, Inc.
Greeno is charged with ensuring distillation quality and supporting new product development for contract distilling customers and MGP Brands.
Greeno will guide the company’s Master Distillers and process engineers and oversee technical processes across MGP distillery operations in Atchison, Kansas, Lawrenceburg, Indiana, and Washington, D.C.
On the product development side, he will collaborate with MGP’s alcohol R&D and Innovations team to develop new product concepts and custom mash bills and distillates.
Greeno will thus be expected to oversee the technical operations of Luxco, particularly its distilling business which is comprised of Lux Row Distillers and Limestone Branch Distillery.
The transaction is expected to be completed during the first half of this year, subject to regulatory approvals and customary closing conditions.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERELinkedInFacebookTwitterWhatsAppEmailCopy LinkShare
