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MGP to acquire Luxco


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MGP Ingredients To Acquire Luxco; Boost Position In Branded-spirits Sector- Quick Facts

(RTTNews) - MGP Ingredients, Inc. (MGPI), a supplier of distilled spirits as well as specialty wheat proteins and starches, said Monday it has agreed to acquire Luxco, Inc., and its affiliated companies. 

The deal represents an enterprise value of $475 million, comprised of equal parts cash and stock. The transaction is expected to be completed during the first half of 2021.

Luxco is a branded beverage alcohol company across various categories, with a more than 60-year business heritage. For the unaudited twelve-month period ended October 31, 2020, Luxco generated approximate net revenues of $202 million and 9-liter case volume of 4.8 million


Luxco's portfolio of brands include Ezra Brooks Bourbon Whiskey, Daviess County Straight Bourbon Whiskey, Yellowstone Bourbon Whiskey, El Mayor Tequila and Everclear.

 

MGP Ingredients noted that the transaction will immediately increase the company's scale as well as market position in the branded-spirits sector and also strengthen its platform for future growth of higher value-added products.


Under the terms of the agreement, Luxco shareholders will receive aggregate cash consideration of $238 million, subject to customary adjustments for working capital, net indebtedness and transaction expenses.


The shareholders will also receive 5 million shares of MGP common stock, valued at about $238 million based on a 20-day volume-weighted average price as of January 11, 2021. 

Luxco shareholders will have the right to nominate up to two of the company's nine Board directors, with Donn Lux being designated as the Luxco shareholders' first director following the closing of the transaction.

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That's interesting.  I wonder if that means MGP will become the source for many current Luxco brands.  Also, wasn't Luxco starting to distill too.

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PhantomLamb

Does this mean that Rebel Yell is no longer produced by Luxco?

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6 hours ago, PhantomLamb said:

Does this mean that Rebel Yell is no longer produced by Luxco?

Yes and no. Due to the events of this last summer they dropper the name Rebel Yell. It is now called Rebel.

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PhantomLamb
12 hours ago, flahute said:

Yes and no. Due to the events of this last summer they dropper the name Rebel Yell. It is now called Rebel.

Yes, I remember that.  I currently have a "Rebel Yell" and "Rebel" in my bunker.  Odd how these things progress...

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tanstaafl2
On 1/26/2021 at 8:19 AM, PaulO said:

That's interesting.  I wonder if that means MGP will become the source for many current Luxco brands.  Also, wasn't Luxco starting to distill too.

Luxco is indeed now distilling, having recently built a moderate sized distillery in Bardstown. The cost of the transaction is interesting. I don't know what the value of the distillery alone is or how much whiskey stock/ongoing contracts they currently control but the purchase price seemed like a pretty good deal for Luxco compared to High West for example (160 million in 2016).

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