ATCHISON, KAN. — MGP Ingredients, Inc. has reached an agreement to acquire Luxco, a St. Louis-based beverage alcohol company, for $238 million in cash and 5 million shares valued at approximately $238 million. The transaction is expected to close during the first half of 2021.
“The definitive merger agreement with Luxco presents a unique opportunity to take a material step toward realizing our long-term strategy,” David J. Colo, president, chief executive officer and chief operating officer of MGPI, said during a Jan. 25 conference call. “It will enhance our product offering by adding a leading beverage alcohol company across various categories. And an enterprise with a storied history reaching back to its founding in St. Louis in 1958.
“This deal is consistent with our ongoing strategy to shift the company’s focus into higher value-added products. It will provide an immediate material increase to MGP’s scale in the branded spirits sector that establishes an additional platform for future growth and significantly diversifies our business. We consider this a significant value creation opportunity to acquire a unique and attractive national spirits platform.”
Mr. Colo said Luxco has built a strong distribution platform with sales and distributor representation in all 50 states and a dedicated international sales team. Luxco is both a leading distiller and importer of spirits across various categories, including bourbon, tequila, Irish whiskey, gin, vodka, portals, liqueurs and creams. The company’s brands include Ezra Brooks Bourbon Whiskey, Daviess County Straight Bourbon Whiskey, Yellowstone Bourbon Whiskey, El Mayor Tequila and Everclear.
Luxco operates bottling facilities in Cleveland, St. Louis, and Northern Ireland, as well as distilleries in Bardstown, Ky., and Lebanon, Ky.
Luxco generated net revenues of approximately $202 million in the 12-month period ended Oct. 31, 2020.