MGPI completes purchase of distillery assets
Dec. 28, 2011
by Eric Schroeder
ATCHISON, KAS. — MGP Ingredients, Inc., through its wholly-owned subsidiary, MGPI of Indiana, L.L.C., has finalized the acquisition of Lawrenceburg Distillers Indiana, L.L.C. distillery assets located in Lawrenceburg, Ind., and the adjacent community of Greendale, Ind. The assets include alcohol fermentation and distillation operations, as well as bulk barrel storage facilities, blending operations and a tank farm. MGPI said the acquisition will strengthen its role in serving beverage alcohol customers in the branded packaged goods industry.
According to MGPI, the purchase increases production capacity in the company’s food grade alcohol area by enabling the company to begin producing premium bourbon and whiskey products, while also substantially adding to its gin and grain neutral spirits output. It also enhances the company’s service and distribution capabilities and provides dual sources of supply, primarily for customers of distilled gins and grain neutral spirits, which have been mainstays of MGPI’s beverage alcohol product portfolio for nearly seven decades.
“The acquisition of the LDI distillery is highly exciting and represents a truly momentous event in our company’s long history,” said Tim Newkirk, president and chief executive officer at MGPI. “It not only broadens our role and presence in the beverage alcohol marketplace, but, more importantly, it demonstrates our responsiveness to the numerous requests we have received from customers to supply them with high quality bourbons and corn and rye whiskeys, in addition to our premium vodkas and gins. Therefore, we view this acquisition as a tremendous opportunity to bolster our ability to meet customers’ needs through more diversified and complete product offerings, as well as increased production capacity.”
As part of the agreement, MGPI paid Lawrenceburg Distillers cash equal to the current assets minus current liabilities of the distillery assets, estimated at $11 million. The acquisition was funded through bank financing.