Stock Spirits to acquire 25% stake in Quintessential Brands Ireland Whiskey
UK-based Stock Spirits Group has signed an agreement to acquire a 25% stake in Quintessential Brands Ireland Whiskey (QBIW) for €18.3m.
QBIW owns and manages Dublin Liberties and the Dubliner Irish Whiskey brands, which offer a range of Irish whiskey products that are sold in more than 30 countries.
Stock Spirits chief executive Mirek Stachowicz said: “We are delighted to be partnering with Quintessential Brands in an exciting Irish whisky business and to be adding these outstanding brands to our portfolio.
“We have already developed strong whisky category management capabilities courtesy of our distribution agreements with our agency partners, and see these brands as being highly complementary to that platform.
“We see significant potential for the brands globally, including in our core markets of Poland and the Czech Republic, and are confident that they will complement our strong market positions in vodka, herbal bitters, brandy, and limoncello. We are hopeful that this will be the start of a long and fruitful working relationship with Quintessential Brands.”
Currently, QBIW is constructing Dublin Liberties in the centre of Dublin.
The investment made by Stock Spirits will be used to complete construction of the distillery, on promotion of its brands, as well as to finance working capital.
Quintessential Brands will continue to provide blending and bottling services, as well as sales and marketing support.\
As per the terms of the agreement, Stock Spirits will make an initial cash payment of €15m for the 25% equity interest and the deferred amount of €3.3m, which is payable over a period of five years. The deferred consideration is subject to certain performance conditions.
Stock Spirits intends to finance both the initial and deferred cash consideration through undrawn debt facilities.