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Nyetimber set to acquire The Lakes Distillery
Sussex and Hampshire-based wine producer Nyetimber is set to acquire The Lakes Distillery in a deal valued at £71 million.
The producer said it has offered the deal for the distiller because it believes that “The Lakes is the leading English distiller of premium quality single malt whisky and other premium spirits” with its “characteristic sherry-led house style, wood forward approach and depth of flavour”.
It said in the announcement that there was a “sizeable opportunity” for The Lakes to grow its market share within the domestic single malt whisky market, as well as internationally, claiming that the distillery’s “English provenance will resonate well with consumers”.
The acquisition was also cited as part of the Sussex producer’s plans to create a “globally relevant, English luxury drinks group”, with the deal expected to be wrapped up within this quarter, subject to conditions.
Enthusiastic
Commenting on the acquisition, CEO of the distillery, James Pennefather, said the Lakes was “enthusiastic” about its new ten year plan to achieve a 1% share of the global luxury dark spirits market by 2030.
A statement from The Lakes board as part of the deal said: “By joining the Nyetimber family of companies, The Lakes will benefit, in particular in terms of quality of production, brand marketing and routes to market.
“The Lakes Directors are confident that this will confer significant benefits to The Lakes’ long-term prospects both as a brand and as a company and the Nyetimber offer, which values The Lakes at an enterprise value of approximately £71million, equivalent to a multiple of 12.2 times net revenues for FY23, represents not only the best way to ensure that The Lakes remains fully funded but also provides fair value for existing shareholders at this stage in The Lakes’ growth journey.
“We are pleased to recommend the Acquisition to our shareholders and I look forward to working with Eric and the Nyetimber team as we continue our journey to build a luxury international spirits brand.”
Excited
CEO of Nyetimber, Eric Heerema, said the company was “excited” by the prospect of acquiring The Lakes.
He said: “We believe that this potential acquisition represents an opportunity for us to expand our capabilities, drive exciting new growth and support The Lakes in delivering on its ambition to be a globally recognised spirits brand.
“Not only do we have an inherent understanding and strong relationships with the world’s leading luxury restaurants, bars and retailers, but we also have a shared strategic vision.”