Hillhouse Nears Deal to Acquire Scotch Brand Loch Lomond
Hillhouse Nears Deal to Acquire Scotch Brand Loch Lomond
(Bloomberg) --
Hillhouse Capital is acquiring iconic Scottish whisky maker Loch Lomond Distillers Ltd. to expand its portfolio of consumer brands.
The investment firm has teamed up with the distiller’s management for the acquisition, the company said in a statement on Thursday, without giving financial terms. Hillhouse plans to expand Loch Lomond in other parts of the world such as Asia, where whisky has become more popular.
The announcement confirmed an earlier Bloomberg News report. Hillhouse will hold a majority stake in Loch Lomond, while the distiller’s management will retain a significant minority stake, people familiar with the matter have said. The deal would give the business an equity value of $300 million to $400 million, they said, asking not to be identified because the matter is private.
“We believe now is the right time to move forward into the next stage of our growth strategy as we look to innovate further, extend our portfolio of brands and continue to expand our international presence, particularly in Asia where Hillhouse has significant experience," Colin Matthews, Loch Lomond Chief Executive Officer, said in the statement.
Loch Lomond, with its first distillery site dates back to 1814, was bought by London-based Exponent Private Equity in 2014 for an undisclosed amount. The distiller is famous for its single-malt and single-grain Scotch.
Hillhouse’s existing investments in the consumer industry include pet food company Gimborn and a Chinese joint venture with Peet’s Coffee. The investment firm, founded by Zhang Lei with money from the Yale University endowment, is also backer of companies such as Tencent Holdings Ltd. and GrabTaxi Holdings Pte.
Spirit companies in the U.K. have been steadily changing hands in recent years, attracting international buyers with a more globalized distribution network.
In 2017, Pernod Ricard SA sold its Glenallachie distillery to a consortium of investors including Billy Walker. A year earlier, Jack Daniel’s whiskey maker Brown-Forman Corp. purchased the BenRiach single-malt distillery. Diageo Plc’s United Spirits Ltd. unit agreed to sell its Whyte & Mackay spirits business to Philippines-based Emperador Inc. in 2014.
To contact the reporters on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.net;Giles Turner in London at gturner35@bloomberg.net
To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Matthew Monks
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