M&A Update | Craft Beverage 2017

Table 4: M&A activity without reported transaction value or multiple data – Distilled spirits producers

Transaction Date

Target Company

Transaction Overview

Acquiring Company

Becle, S.A.B. de C.V. entered into a definitive agreement to acquire Pendleton Whisky Brands of Hood River Distillers, Inc. for approximately $210 million on December 13, 2017. In addition to the core Pendleton Whisky Expression, the acquisition includes the Pendleton Midnight, Pendleton 1910 and Pendleton Directors' Reserve expressions. Hood River Distillers will continue to bottle the Pendleton portfolio of products for Proximo and will also continue to operate with its remaining brands. The transaction is subject to the receipt of regulatory approvals, anti-trust approvals and other customary closing conditions. The transaction is expected to close in the first quarter of 2018. Milestone Brands LLC acquired a majority stake in Pura Vida Spirits Company LLC, Rights of Naranja Brand from Stewart Skloss and Pura Vida Spirits Company, LLC on November 13, 2017. Stewart Skloss will retain a minority stake in the Naranja brand. Deutsch Family Wine & Spirits acquired Bib & Tucker Bourbon and Masterson's Rye Whiskey brands from 3 Badge Beverage Corporation on August 2, 2017. Bacardi Ltd. took a minority stake in Dublin-based Teeling, marking its first foray into the Irish whiskey segment. Established in 2012, Teeling is known for its flagship 46%-abv Small Batch Irish whiskey. Bacardi Ltd. will become the exclusive U.S. importer for the Teeling Irish whiskey range. Moët Hennessy USA, Inc. acquired Woodinville Whiskey Company from Orlin Sorenson and Brett Carlile recently. Co- founders of Woodinville Whiskey, Orlin Sorensen and Brett Carlile, will continue to oversee the distillery's operations. No employees’ jobs will be affected. Diageo North America Inc. entered into a definitive agreement to acquire Casamigos Spirits Co. from George Clooney, Rande Gerber, Michael Meldman and others for $1 billion on June 21, 2017. The other owners include Lee Einsidler, Schuyler Joyner and Glenn Rotner. Under the terms of the agreement, Diageo will pay initial consideration of $700 million and a further potential $300 million based on a performance linked earn-out over 10 years. The acquisition will be funded through existing cash resources and debt. George Clooney, Rande Gerber and Michael Meldman are expected to stay with Casamigos after its acquisition. International Spirit & Beverage Group, Inc. (OTCPK:ISBG) agreed to acquire assets including RWB vodka brand from Aristocrat Group Corp. (OTCPK:ASCC) on September 12, 2017.

Pendleton Whisky Brands of Hood River Distillers, Inc.

Becle, S.A.B. de C.V. (BMV:CUERVO *)

11/27/17

10/27/17

Rights of Naranja Brand

Milestone Brands LLC

Aristocrat Group Corp., Assets Including RWB Vodka Brand

International Spirits & Beverage Group, Inc. (OTCPK:ISBG) Deutsch Family Wine & Spirits

08/16/17

3 Badge Beverage Corporation

07/24/17

06/30/17

Teeling Whiskey

Bacardi Ltd.

Woodinville Whiskey Company, LLC

Moët Hennessy USA, Inc.

06/27/17

Diageo North America Inc.

06/16/17

Casamigos Spirits Co.

06/08/17

Tin Man Brewing, LLC

Neace Ventures acquired Tin Man Brewing, LLC from Davidson family on June 16, 2017.

Neace Ventures

Pernod Ricard USA, LLC signed an agreement to acquire an unknown majority stake in Del Maguey Single Village Mezcal on June 7, 2017. Under the terms of the transaction, the management team of Del Maguey including the founder Ron Cooper along with Michael Gardner, Steve Olson, and the rest of the Del Maguey team will remain in place.

Pernod Ricard USA, LLC

05/01/17

Del Maguey Inc.

William Grant & Sons Limited

04/17/17

Tuthilltown Spirits LLC

William Grant & Sons Limited acquired Tuthilltown Spirits on April 18, 2017.

The Windquest Group acquired 51% stake in Ridge Cider Company on April 4, 2017. Matt DeLong, Founder of Ridge, will become the Head Cidermaker.

03/14/17

Ridge Cider Company

The Windquest Group

Equity Stakes In Fat Dog Spirits, LLC and 3R Distribution, LLC

Turbo Global Partners, Inc. (OTCPK:TRBO)

02/28/17

Turbo Global Partners, Inc. acquired Equity Stakes In Fat Dog Spirits, LLC and 3R Distribution, LLC on March 28, 2017.

Remy Cointreau Group

02/06/17

Westland Distrillery

Remy Cointreau Group acquired Westland Distillery, a distinctly American-style single malt whiskey.

Eastside Distilling, Inc. acquired Motherlode, LLC from Allen Barteld for $0.39 million on March 8, 2017. Under the terms of deal, Eastside Distilling issued 0.26 million shares as consideration. Post acquisition, Allen Barteld will be appointed as the President and the Chief Executive Officer of Motherlode and continue to serve as its manager. NBV Investments Inc. (“NBVI”), a subsidiary of Austin Nichols & Co. Incorporated (d/b/a Pernod Ricard North America) and an affiliate of New York-based Pernod Ricard USA, LLC, announced the signing and completion of the acquisition of a majority share of Smooth Ambler, the award-winning West-Virginia based distiller and producer of Smooth Ambler Contradiction Bourbon, Old Scout Single Barrel Bourbon and other high-end spirits. Stoli Group USA, LLC acquired Kentucky Owl, LLC on January 25, 2017. Under the terms of the agreement, Kentucky Owl's Dixon Dedman will continue to manage the business he co-founded in 2008. Constellation Brands acquired a minority stake in Catoctin Creek Distilling Company, LLC, a distillery producing an award winning 100% rye single-barrel whiskey in Purcellville in Loudoun County, Virginia. This investment provides the company with new capital to grow production, marketing, and to provide more jobs in Virginia.

Eastside Distilling, Inc. (NasdaqCM:EAST)

02/02/17

Motherlode, LLC

Smooth Ambler Spirits Co.

Pernod Ricard USA, LLC

01/31/17

01/09/17

Kentucky Owl, LLC

Stoli Group USA, LLC

Catoctin Creek Distilling Company, LLC

01/05/17

Constellation Brands

Source: Capital IQ (February 26, 2018)

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