MGP Ingredients Buys This Family And Founder-Owned American Whiskey Company Penelope Bourbon

Markets expect rate cuts — but your earnings don’t have to suffer. Lock in 7.2% until 2028 from ten individual bonds.

MGP Ingredients, Inc MGPI said its subsidiary, Luxco Inc, has reached a definitive agreement to acquire 100% of the equity of Penelope Bourbon LLC and its related assets.
The consideration includes upfront $105.0 million in cash to be paid at closing, with further potential earn-out contingent of up to a maximum cash payout of $110.8 million measured through December 31, 2025, if certain performance conditions are met.
Penelope Bourbon is a family and founder-owned and operated American Whiskey company with a portfolio of whiskeys in the premium-plus price tiers.
The acquisition includes all intellectual property and inventory of bottled product, as well as Penelope's aging whiskey inventory on a debt-and-cash-free basis.
The deal is expected to enhance MGP's presence in growing American Whiskey category and expands portfolio of premium-plus price point brands.
The transaction is anticipated to close in June 2023
"This acquisition aligns well with our premiumization strategy and our focus on growing high potential, high margin brands," said CEO David Colo.
MGP plans to fund the acquisition using its existing revolving credit facility and cash on hand. It held $31.7 million in cash and equivalents as of March 31, 2023.
Price Action: MGPI shares are trading higher by 0.48% at $101.85 on the last check Monday.

Momentum9.67

Growth14.18

Quality46.16

Value76.87

Short

Medium

Long