The Lakes Distillery is set to be taken over in a £71 million deal.
London-based Nyetimber Wines and Spirits Group wants to acquire the Lake District distillery, at Setmurthy, near Bassenthwaite.
It said: “Nyetimber believes that The Lakes is the leading English distiller of premium quality single malt whisky and other premium spirits, differentiated by its characteristic sherry-led house style, wood forward approach and depth of flavour.
“Having significantly expanded capacity over the last few years, Nyetimber believes that there is a sizeable opportunity for The Lakes to grow its market share within the UK single malt whisky market, as well as to continue to expand its presence internationally, where Nyetimber is of the view that the quality and profile of The Lakes’ products and English provenance will resonate well with consumers.
“Nyetimber believes that it is the right long-term partner to support The Lakes’ management team to deliver on its ambitions to become a leading international spirits brand, with the acquisition of The Lakes marking an important next step in Nyetimber’s plan to create a globally relevant, English luxury drinks group.”
The takeover deal values Lakes Distillery’s share capital at £46.1m.
James Pennefather, The Lakes CEO, said: “The board is enthusiastic about its ambitious new 10-year plan to achieve a one per cent share of the global luxury dark spirits market by 2030.
“This plan entails an additional funding requirement of £10m 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 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 £71m, 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.”
Founded in 2012, in September 2021, The distillery completed a major expansion at the site in partnership with EJ Musk Process Services, which designed, built, and installed equipment to triple whisky production.
In March 2020, the business secured a £4.25m investment from Comhar Capital to support its ambitious growth plans.
