Luxco acquires brands from Beam for US$65m

Global spirits company Beam Inc has agreed to sell a collection of brands to producer, importer and marketer Luxco for approximately US$65 million.

The brands Luxco is purchasing include Wolfschmidt vodka, Calvert (Lord Calvert Canadian, Calvert Extra, and gin), Bellows (blended whiskey, Bourbon, gin, rum, Scotch and vodka), Dark Eyes vodka, Canada House Canadian, and Tempo Triple Sec. The brands, distributed in North America, generated 2012 revenues of approx. US$30m (excluding excise taxes) and volumes of approx. 1.8m cases.

“Following the premium brand acquisitions we’ve made in the past two years, this move reduces portfolio complexity in economy vodka and Canadian whisky, and reinforces Beam’s focus on developing our Power Brands and Rising Stars, which are our most profitable growth engines,” said Matt Shattock, president and CEO of Beam Inc. Beam segments its brands into Power Brands, Rising Stars, Local Jewels and Value Creators. The brands being divested to Luxco are among Beam’s Value Creators.

“We are thrilled to be adding these brands to our portfolio. Beam has done a great job in establishing them across many markets and categories. We look forward to expanding them further and bolstering our entire portfolio with our distributors,” said Donn Lux, chairman and CEO of Luxco.

The transaction is subject to customary closing conditions and is expected to be completed by the end of January. As part of the transaction, Beam will continue to produce and bottle the brands through at least January 2014.

22 January 2013 - Felicity Murray