Ian Macleod gains £80m funding to revive Rosebank
Ian Macleod Distillers has secured an £80 million (US$105m) refinancing package to support the revival of closed Lowland whisky distillery Rosebank.
The company – producer of the Glengoyne, Tamdhu and Smokehead Scotch brands – entered into a binding agreement with Scottish Canals to buy the Falkirk site last month.
The distiller also separately purchased the Rosebank trademark, along with the distillery’s remaining casks, from Diageo.
Ian Macleod obtained the asset-based debt facilities from PNC Business Credit and Bank of Scotland, led by KPMG’s Debt Advisory team.
The facilities include a further £10 million accordion option and have a term in excess of five years.
Leonard Russell, Ian Macleod’s managing director told The Spirits Business last month that he “plans to produce Rosebank Lowland single malt in exactly the same way as it is known”.
“We’ve got casks from 1990 through to 1993, and we will bottle them as limited releases over the course of the next few years, maybe up to 10 years.”
All equipment for the distillery will have to be installed in the old distillery building, including three stills for triple distillation, plus wormtub condensers.
The distillery will have a capacity of “around 600,000 litres”. “We have to build the place, replace the equipment, then we have to start distilling it,” said Russell. “It needs a major refurbishment and that’s what its going to get.”
As for future releases from the distillery, Russell plans to launch a “limited-edition bottling at around 25-30 years, probably next year”.
For the year ended September 2016, the Broxburn-based business recorded revenues of £64.7 million and employed 118 people.
The refinancing, along with “strong” trading results, is said to “position the business well to deliver its medium-term strategy”.
Mike Younger, finance director of Ian Macleod Distillers, said: “This transaction provides Ian Macleod Distillers with a platform for growth, provided by a supportive banking club. The role played by KPMG was instrumental in securing the facility on flexible and competitive terms.”
Bruce Walker from KPMG’s Debt Advisory team, added: “This deal follows a competitive market process, reflecting the strength of both the business and the whisky market more widely.”