©Two Birds Spirits
Honey-infused spirits brand The British Honey Company (BHC) has agreed to acquire Leicestershire-based Union Distillers, producer of the Two Birds brand, for £8 million.
The deal consists of an initial consideration of £8 million and an earn-out consideration of up to £2 million to be completed through a combination of cash and BHC shares.
Union Distillers is an independent producer and distributor of proprietary and own-label spirits, distilling spirits on behalf of some German supermarkets with a UK presence. The company’s Two Birds Spirits brand is comprised of 11 gins, seven vodkas, a spiced rum, an absinthe and an espresso vodka liquor, which are sold across retail and wholesale in the UK.
For the two years ended 30 September 2019 and 2020, Union Distillers is said to have posted revenues of £3.42 million and £4.94 million respectively.
With the acquisition, BHC aims to create and grow a multi-category brand portfolio across a number of geographies with a broader access to the UK off-trade market, through developing its product portfolio and increasing its market presence and customer base.
Union Distillers’ Two Birds brand will join BHC’s portfolio that includes Keepr’s, Dodds Gin – which it acquired following the deal for The London Distillery Company – and English Heritage.
Upon completion of the transaction, BHC is looking to purchase a new canning line and enhancing the production facilities at Union Distillers, which includes stills and a bonded warehouse. According to BHC, the combined company’s capacity will enable the production of three million bottles, seven million cans and five million miniatures in 2021.
Meanwhile, co-owner and CEO of Union Distillers, Mark Gamble, will join BHC’s board as an executive director and will play a key role in the integration, development and growth of the combined group.
As part of the agreement, BHC will raise approximately £4.59 million by the issue of shares and has also entered into an agreement for a new £1.63 million unsecured convertible loan facility.
The two companies intend to complete the integration plan by the end of 2021.
© FoodBev Media Ltd 2020
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