ATCHISON, Kan. — MGP Ingredients Inc., a leading provider of distilled spirits, branded spirits and food ingredient solutions, announced that its Luxco Inc. subsidiary has reached a definitive agreement to acquire 100% of the equity of Penelope Bourbon LLC and its related assets.
Founded in 2018, Penelope Bourbon is a family and founder-owned and operated American whiskey company with a diverse portfolio of high-quality whiskeys in the premium-plus price tiers. The acquisition includes all intellectual property and inventory of bottled product, as well as Penelope’s aging whiskey inventory on a debt-and-cash-free basis.
The upfront consideration is $105 million in cash to be paid at closing, with further potential earn-out contingent consideration of up to a maximum cash payout of $110.8 million measured through December 31, 2025, if certain performance conditions are met, reflecting the brand’s current growth potential.
The acquisition is expected to be financed using MGP’s existing revolving credit facility and cash on hand.
“We are excited to welcome Penelope as part of our expanding premium-plus brand portfolio,” said David Colo, president and CEO of MGP Ingredients. “This acquisition aligns well with our premiumization strategy and our focus on growing high potential, high margin brands. Penelope is an excellent addition to our Branded Spirits portfolio as we look to expand its availability throughout our national distribution platform. We are enthusiastic about this acquisition and its ability to further our participation in the growing American Whiskey category while delivering meaningful long-term growth.”
“MGP has been an incredible partner of ours since we started our business in 2018. We are excited to take our partnership to the next level with the goal of accelerating Penelope’s growth for years to come,” said Michael Paladini, CEO and founder of Penelope.
“Since our initial product launch in 2019, it has been amazing to watch consumers embrace our brand. We look forward to expanding our partnership with MGP and building on our legacy,” said Penelope COO and founder Daniel Polise.
The transaction is anticipated to close in June.
