The Lakes Distillery Company plc of Cumbria — an English distiller of single malt whisky and other premium spirits — said it agreed a recommended cash takeover offer from London-based Nyetimber Wines and Spirits Group Limited for £1.16 per share or £46.1 million.
“This implies an enterprise value of £71.0 million, based on The Lakes directors’ expectation for The Lakes’ net financial debt as at 31 May 2024, which comprises £25.8 million of financial debt and associated make whole payments, less £0.9 million of cash and cash equivalents,” said The Lakes Distillery Company.
Nyetimber Wines and Spirits Group Limited CEO Eric Heerema said: “We are excited by the prospect of acquiring The Lakes, the leading English distiller of premium quality Single Malt Whisky, Gin, and Vodka.
“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.”
The Lakes CEO James Pennefather said: “The Lakes board is enthusiastic about its ambitious new ten year plan to achieve a 1 per cent. share of the global luxury dark spirits market by 2030.
“This plan entails an additional funding requirement of £10 million over the next three years to provide the necessary growth capital to increase production capacity, to further invest in laying down maturing spirit stocks and to grow the brand’s footprint in international markets.
“The offer by Nyetimber offers the prospect of an owner with the same shared strategic vision and crucially, certainty of funding.
“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 £71.0 million, 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.”