Branded Spirits Acquisition of Penelope Bourbon
BRANDED SPIRITS
PENELOPE BOURBON ACQUISITION
Transaction Overview
.
•
Acquired 100% of Penelope Bourbon
purchase price as follows:
•
Upfront: $105.0M upon closing
Earnout: additional potential earn-out up
to maximum cash payout of $110.8M
•
If certain performance conditions are met
by December 31, 2025, the maximum
earnout will be achieved
Total Consideration: up to $215.8M
Financed using MGP's existing revolving
credit facility and cash on hand
Rationale
•
•
MGP
Enhances presence in growing American Whiskey
category
Expands portfolio of premium-plus price point
brands
• Able to leverage Branded Spirits national
distribution platform to extend Penelope's reach
•
•
Was an MGP Distilling Solutions customer prior
to the acquisition
Expected to be immediately accretive to Branded
Spirits segment gross margin and consolidated
adjusted basic earnings per share after close
Anticipated total cost synergies of approximately
$5 million by December 31, 2025
Transaction closed on June 1, 2023
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