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The Distell Group has acquired Scotch whisky producer Burn Stewart Distillers Limited, which is behind brands such as Bunnahabhain and Scottish Leader, in a deal worth just over R2.2 billion (£160 million).
The South African spirits, wines and ready-to-drinks business has purchased the company from Scotland-based CL World Brands Limited and Trinidad and Tobago-based Angostura Limited.
As part of the agreement, Distell is purchasing 100% of the equity in Burn Stewart, whose portfolio includes three single malt whisky distilleries, a blending and maturation facility, a bottling hall and a dry and finished goods storage site. The deal also covers the company’s in-house marketing and distribution functions and all whisky stocks currently in maturation.
According to Distell, the biggest brand in the portfolio is Scottish Leader, which it claims is the “pre-eminent” blended Scotch whisky in its category in Taiwan. Other brands under the Burn Stewart banner include the blended whisky Black Bottle as well as the single malts Bunnahabhain, Deanston, Tobermory and Ledaig.
The deal follows an equal partner venture established in 2007 between Distell and Burn Stewart in which the two parties co-owned and marketed Bunnahabhain, Black Bottle and Scottish Leader in sub-Saharan Africa.
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The deal brings a number of Scotch whisky brands under Distell’s ownership |
Distell said the acquisition will enable it to capitalise on the continuing global growth in whisky consumption and give it access to scarce blended and single malt stocks from prime whisky-producing regions in Scotland, while also enhancing its global footprint.
“Our acquisition of Burn Stewart is a very significant development for Distell from a strategic perspective but also given the rich and proud history and heritage of the brands involve,” added Distell Group Managing Director Jan Scannell. “This gives us an outstanding foundation from which to build, while cherishing their individual traditions.
“Bunnahabhain, the Burn Stewart Distillers’ flagship single malt, is made on Islay, considered one of the most prestigious whisky locations by connoisseurs. There are only eight distilleries on the Island, so we are extremely fortunate to acquire this very highly-ranked brand.
“Tobermory is the only distillery on the Isle of Mull, one of the most popular tourist spots in Scotland, while the home of Scottish Leader is the Deanston Distillery situated in the Scottish Highlands in Doune near Stirling, close to both Edinburgh and Glasgow, and another important destination for whisky enthusiasts.”
Based near Glasgow, Burn Stewart employs close to 270 staff and operates a sales and marketing branch in Taiwan. Scannell believes Scottish Leader will give Distell a springboard into Taiwan, a country with a “growing appetite for other speciality drinks the company offers”.
Burn Stewart Managing Director Fraser Thornton, said: “The close working relationship with Distell over the fourteen years has amply demonstrated the South African group’s capacity, experience and expertise to strengthen and grow the company.
“We have developed solid synergies with a strong cultural fit between our two entities and are enthused by Distell’s plans to recapitalise and advance the business.”
In 2009 Distell acquired Cognac brand Bisquit and associated inventories from Pernod Ricard for €31 million, as reported.
