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MGP Ingredients has agreed to acquire US alcohol producer and marketer Luxco and its affiliated companies in a $475 million deal.

According to MGP, a supplier of distilled spirits and speciality wheat proteins and starches, the acquisition will increase its scale and boost its market position in the branded spirits sector.

Luxco is a producer, supplier, importer and bottler of beverage alcohol products, with a portfolio of brands that includes Ezra Brooks, Daviess County, Yellowstone, El Mayor and Everclear.

Founded in 1958 in St. Louis, Missouri, Luxco remains locally owned and operated by the Lux family. The company owns or controls a stake in distilleries including Lux Row Distillers and Limestone Branch Distillery.

For the unaudited 12-month period ended 31 October 2020, Luxco generated approximately $202 million in net revenues, according to MGP.

The acquisition deal represents an enterprise value of $475 million, comprised of equal parts cash and stock.

“Luxco presents a unique opportunity to take a material step towards realising our long-term strategy. It significantly expands our product line in the higher-value branded spirits sector and increases our sales and distribution capabilities across all 50 states,” said David Colo, president and CEO of MGP Ingredients.

“We have enormous respect for the platform Luxco has built, and we’re excited to add its portfolio of fast-growing premium distilled spirits brands together with strong, cash-flow generating legacy brands.”

The transaction is expected to be completed during the first half of this year, subject to regulatory approvals and customary closing conditions.

Last year, MGP Ingredients expanded its textured protein offering with the addition of a gluten-free textured pea option.