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Tuesday, 16 October, 2001, 17:09 GMT 18:09 UK
£200m buy-out for whisky division
The division has been sold for £200m
A management team has bought the European division of US drinks company Jim Beam Brands in a £200m deal.
The purchase of the UK-based Scotch whisky business, a subsidiary of American firm Fortune Brands Inc, has been described as the biggest deal of its kind in Scottish business history. A new company, Kyndal, will take control of Invergordon Distilleries - which includes brands like Whyte and Mackay and Vladivar vodka.
It will control approximately 9% of the global whisky market. Fortune Brands said the sale would allow it to focus on more profitable liquor brands and wines. The company also said the transaction would have no effect on the US or international distribution of the Jim Beam Brands portfolio, which includes Jim Beam bourbon, Knob Creek small batch bourbon, DeKuyper cordials, Vox vodka and Geyser Peak wines. However, Jim Beam Brands will retain global ownership of the After Shock liqueur brand and hold a perpetual licence in the United States for The Dalmore whisky. Positive development The purchase is backed by West LB, one of Germany's largest banks, and the UK-based Rotch Property Group. "This sale is another very positive strategic development for our Jim Beam Brands spirits and wine business," said Fortune Brands chairman Norm Wesley. "The UK Scotch business, while successful, offered lower returns and lower growth than our core spirits and wine business, and simply did not fit with our strategic focus." Earlier this year, Jim Beam Brands teamed up with the maker of Absolut vodka for joint distribution of the two companies' spirits and wine brands. Fortune Brands Inc. is a consumer products company with annual sales exceeding $5.8bn.
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