Luxco to buy Penelope Bourbon for $105m

American whiskey company Luxco has agreed to buy Penelope Bourbon for US$105 million.

Luxco, a subsidiary of MGP Ingredients, will pay up to US$110.8m if Penelope Bourbon meets certain performance conditions by 31 December 2025.

Penelope Bourbon was founded in 2018. The acquisition will include all intellectual property and inventory of bottled product, as well as the brand’s maturing whiskey inventory on a debt- and cash-free basis.

David Colo, president and CEO of MGP Ingredients, said: “This acquisition aligns well with our premiumisation 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.”

The purchase is anticipated to close in June and is part of MGP Ingredients’ premiumisation strategy.

Penelope Bourbon is an existing MGP Distilling Solutions customer. MGP Ingredients believes the acquisition will enhance its presence in the American whiskey category.

Daniel Polise, chief operating officer and founder of Penelope, added: “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.

“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 our legacy.”

MGP Ingredients started a US$12m expansion of its barrel warehouse in Kentucky last year to meet growing demand for American whiskey.