Gruppo Campari has entered into a deal to purchase 100% stake in Forty Creek Distillery (FCD), a Canada-based independently-owned spirits company, for €120.5m.

The acquisition comprises full portfolio of FCD including stocks, distillery, manufacturing facilities and a Hospitality Centre located in Grimsby, Ontario.

FCD is the fastest growing business in the Canadian whiskey category in Canada with its flagship brand, Forty Creek Whiskey, which includes spirits such as Barrel Select, Copper Pot Reserve, Forty Creek Cream Whiskey and other limited releases such as Forty Creek Confederation Oak, Double Barrel and an annual special John K. Hall Reserve release.

In addition to whiskey, FCD produces vodka, brandy, rum and liqueurs, and operates as an integrated business that produces, blends, packages and sells its spirits.

With the acquisition, Gruppo Campari expands its brand portfolio by adding more product mix and positions itself to premiumise in the growing Canadian whiskey category in the US.

Gruppo Campari CEO Bob Kunze-Concewitz said with Forty Creek Distillery, producer of Forty Creek range of premium Canadian whiskies, they are once again leveraging their acquisition framework in a very disciplined and consistent manner for long-term growth.

"Via the entry to the large and growing Canadian Whisky segment this acquisition further increases our exposure to the highly attractive brown spirits category whilst continuing to enhance our premium portfolio," Kunze-Concewitz added.

FCD founder and whiskey maker John Hall said the deal will further support Forty Creek’s vision to produce unique, quality, handcrafted, Canadian-made spirits.

Following the completion of the transaction, which is expected to be on 2 June 2014, all the business operations and processes will remain unchanged in Canada.