The acquisition of Cooley, the industry’s only remaining independent Irish whiskey distillery, will mark Beam’s entrance into one of the spirits industry’s fastest-growing categories.
The purchase price is approximately $95m on a debt-free basis.
Cooley owns and produces the Kilbeggan, Connemara, Tyrconnell and Greenore brands. It currently sells approximately 250,000 9-litre cases per year – divided among its brands, private label products and bulk sales to third-party customers – and has production capacity to support substantial future growth.
Beam expects the acquisition to be earnings-neutral in 2012 and increasingly accretive moving forward.
The transaction is structured as a tender offer in which Beam will offer Cooley’s stockholders $8.25 in cash for each outstanding share of Cooley stock.
The transaction is conditioned upon holders of at least 80% of Cooley’s outstanding stock accepting the offer and other customary closing conditions.
Holders of over 75% of Cooley’s outstanding stock have irrevocably agreed with Beam to tender their shares in the offer. The parties expect to complete the transaction in the first quarter of 2012.
Source: Beam
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