Beam signs agreement to sell select spirit brands to Luxco for $65m
Illinois-based premium spirits company Beam has signed a definitive agreement to sell a collection of spirit brands to Missouri-based producer of distilled beverages and liqueurs Luxco for $65m.
The brands to be sold 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.
These brands, which are distributed in North America, together generated revenues of about $30m in 2012.
Last year, the company claims to have sold 1.8 million cases in the region.
Beam president and CEO Matt Shattock said this move reduces portfolio complexity in economy vodka and Canadian whisky, and reinforces Beam's focus on developing Power Brands and Rising Stars, which are the most profitable growth engines.
Luxco chairman and CEO Donn Lux said, "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."
The transaction is subject to customary closing conditions and is likely to be completed by the end of January 2013.
As part of the deal, Beam will continue to produce and bottle the brands till January 2014.