MGP Ingredients Buys This Family And Founder-Owned American Whiskey Company Penelope Bourbon

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• MGP Ingredients, Inc MGPI said its subsidiary, Luxco Inc, has reached a definitive agreement to acquire 100% of the equity of Penelope Bourbon LLC and its related assets.
• The consideration includes upfront $105.0 million in cash to be paid at closing, with further potential earn-out contingent of up to a maximum cash payout of $110.8 million measured through December 31, 2025, if certain performance conditions are met.
• Penelope Bourbon is a family and founder-owned and operated American Whiskey company with a portfolio of 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 deal is expected to enhance MGP's presence in growing American Whiskey category and expands portfolio of premium-plus price point brands.
• The transaction is anticipated to close in June 2023
• "This acquisition aligns well with our premiumization strategy and our focus on growing high potential, high margin brands," said CEO David Colo.
• MGP plans to fund the acquisition using its existing revolving credit facility and cash on hand. It held $31.7 million in cash and equivalents as of March 31, 2023.
• Price Action: MGPI shares are trading higher by 0.48% at $101.85 on the last check Monday.