ABG secures €30m to fund warehouse
Rooster Rojo owner Amber Beverage Group has issued €30 million (US$33.2m) worth of bonds to fund its automated, high-bay warehouse project.
Amber Beverage Group (ABG) issued senior secured four-year bonds with investor demand exceeding €45m (US$49.8m). Signet Bank in Latvia acted as the arranger for the bond issue.
The warehouse is being built in partnership with AI Engineering specialists, with ABG investing more than €33m (US$39.5m) in the project.
Jekaterina Stuģe, CEO of ABG, said: “Our entry into the bond market represents a significant step for Amber Beverage Group. We handle 1,400 own and third-party drinks products and our logistics and distribution operations worldwide are already impressive.
“As part of our policy of continuous improvement as we move towards attaining a position as a top 10 spirits company worldwide, we want to further improve our efficiencies. We aim not only for smooth and cost-effective processes but systems that are contemporary, state-of-the-art, and sustainable.
“We continue to look at various M&A [merger and acquisition] transactions and also at important development projects such as the advanced, automated warehouse project.
“The proceeds from the bond issue will be used to build a modern, 24,000 sqm, fully automated logistics centre. It will be located in the Freeport of Riga, Latvia, the city from which the operational ABG head office team works.
“The new facility will increase warehouse capacity by around 30%, from 25,000 pallets to 35,000 pallets and improve the efficiency of the Group. It will incorporate the latest equipment, managed by a powerful warehouse management system. The warehouse technology will be supplied by Jungheinrich at a cost of €15m [US$16.6m].”
ABG’s preliminary financial results for 2022 show the company achieved sales of €365.8m last year.
The firm operates in 16 countries, including Austria, Australia, Germany, Ireland, Mexico, the UK, and the Baltic States.
Its portfolio includes Kah Tequila, Moskovskaya Vodka, The Irishman, and Writers’ Tears.