DEERFIELD, Ill.--(BUSINESS WIRE)--
Beam Inc. (NYSE: BEAM), a leading global premium spirits company, and Luxco, a leading producer, importer and marketer of beverage alcohol products, today announced a definitive agreement for Beam to sell a collection of brands, including related inventory, to Luxco.
The brands included in the transaction are 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 approximately $30 million (excluding excise taxes) and volumes of approximately 1.8 million cases. The purchase price is approximately $65 million.
“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 chief executive officer 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 & 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. Beam expects the transaction to be neutral to EPS in 2013.
About Beam Inc.
As one of the world’s leading premium spirits companies, Beam is Crafting the Spirits that Stir the World. Consumers from all corners of the globe call for the company’s brands, including Jim Beam Bourbon, Maker’s Mark Bourbon, Sauza Tequila, Pinnacle Vodka, Canadian Club Whisky, Courvoisier Cognac, Teacher’s Scotch Whisky, Cruzan Rum, Hornitos Tequila, Knob Creek Bourbon, Laphroaig Scotch Whisky, Kilbeggan Irish Whiskey, EFFEN Vodka, Pucker Flavored Vodka, Larios Gin, Whisky DYC, DeKuyper Cordials, and Skinnygirl Cocktails. Beam is focused on delivering superior performance with its unique combination of scale with agility and a strategy of Creating Famous Brands, Building Winning Markets and Fueling Our Growth.
Headquartered in Deerfield, Illinois, Beam is traded on the New York Stock Exchange under the ticker symbol BEAM and is included in the S&P 500 Index and the MSCI World Index. For more information on Beam, its brands, and its commitment to social responsibility, please visit www.beamglobal.com and www.drinksmart.com.
About Luxco, Inc.
Luxco, based in St. Louis, Missouri, is a leading producer, importer and marketer of beverage alcohol products. Founded in St. Louis in 1958, it is owned and operated by the Lux family. Its portfolio of brands include: Juarez tequila & triple sec, Pearl Vodka, Everclear brand grain alcohol, Arrow Cordials, Ezra Brooks & Rebel Yell bourbons, St. Brendan’s Irish Cream, Salvador’s cocktails, Yago Santgria wine and other well-recognized brands. Further, it owns and operates the Paramount Distillers and Meier’s Wine companies based in Ohio. For more information about the Company, visit www.luxco.com or call 314-772-2626.
Beam Inc. Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned that these forward-looking statements speak only as of the date hereof, and the company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date of this release. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including the risks and uncertainties described from time to time in the Company's Securities and Exchange Commission filings.