Kirin considers Four Roses Bourbon sale in US$1bn deal
Kirin is exploring a US$1 billion sale of its Four Roses Bourbon brand as it looks to shift focus toward its pharmaceutical arm. The move comes amid mounting pressure in the US whiskey sector and heightened interest from potential buyers.
The company has been working with advisers from UBS to test the waters for selling the brand it acquired in the fallout of a joint takeover bid of the Seagram’s drinks empire by Diageo and Pernod Ricard in 2002.
According to The Financial Times, there has been interest from potential buyers in recent weeks, with first-round bids likely to come in November. However, it is also rumoured that Kirin would be willing to consider a partial sale of Four Roses.
Strategic shift toward healthcare
Kirin Holdings is a conglomerate that owns a beverage and beer business and also has a large pharmaceuticals subsidiary called Kyowa Kirin.
It is thought that Kirin wishes to develop the higher-margin healthcare side of its interests while at the same time refocusing its drinks empire including the eponymous beer brands and Japanese Fuji whiskey label, plus the Lion group in Australasia.
US whiskey market under strain
The potential sale comes as the US whiskey sector faces tough times.
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The latest company in crisis is Uncle Nearest which is seeking to sell non-core assets, including vineyards and a Cognac château, as part of a court-ordered receivership to restore the company to a stable footing.
Uncle Nearest faces court-ordered restructuring
Uncle Nearest was founded in 2017 in tribute to Nathan “Nearest” Green, the formerly enslaved master distiller credited with teaching Jack Daniel how to distil whiskey.
The core business of Uncle Nearest remains financially viable, according to receiver Phillip G. Young Jr., who was appointed after a federal court placed the company under receivership following a lawsuit by its senior lender, Farm Credit Mid-America.
Financial pressures and layoffs
That alleged default on more than $108 million in loans and lines of credit, inflated collateral valuations, and other mismanagement issues.
A 13-week budget review indicates revenues are sufficient to cover operating expenses, though 12 employees have been laid off.
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