Beam sells value brands to Luxco
Deerfield, Ill.-based Beam Inc. announced a definitive agreement to sell its Wolfschmidt vodka, Calvert, Bellows, Dark Eyes vodka, Canada House Canadian and Tempo Triple Sec brands and related inventory to Luxco, a St. Louis-based producer, importer and marketer of beverage alcohol products, for $65 million. Distributed in North America, the brands generated revenues of approximately $30 million, excluding excise taxes, and volumes of approximately 1.8 million cases in 2012, the company reports.
“Following the premium brand acquisitions we’ve made in the past two years, this move reduces portfolio complexity in economy vodka and Canadian whisky and reinforces Beam’s focus on developing our power brands and rising stars, which are our most profitable growth engines,” said Matt Shattock, president and chief executive officer of Beam Inc., in a statement. Beam segments its brands into power brands, rising stars, local jewels and value creators. The brands being divested to Luxco are among Beam’s value creators.
“We are thrilled to be adding these brands to our portfolio,” said Donn Lux, chairman and chief executive officer of Luxco, in a statement. “Beam has done a great job in establishing them across many markets and categories. We look forward to expanding them further and bolstering our entire portfolio with our distributors.”
The transaction is subject to customary closing conditions and is expected to be completed by the end of January. As part of the transaction, Beam will continue to produce and bottle the brands through at least January 2014. Beam expects the transaction to be neutral to earnings per share in 2013.