Nyetimber, the Sussex and Hampshire-based wine producer is set to acquire The Lakes Distillery.
Nyetimber said 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.
The acquisition values The Lakes’ existing issued and to be issued share capital at approximately £46.1 million. This implies an Enterprise Value of £71.0 million, based on The Lakes Directors’ expectation for The Lakes’ net financial debt as at 31 May 2024, which comprises £25.8 million of financial debt and associated make whole payments, less £0.9 million of cash and cash equivalents.
Commenting on the Acquisition, James Pennefather, CEO of The Lakes, said: “The Lakes Board is enthusiastic about its ambitious new ten year plan to achieve a 1 per cent. share of the global luxury dark spirits market by 2030.
“This plan entails an additional funding requirement of £10 million 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 4 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 Lakes 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 £71.0 million, 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.
“We are pleased to recommend the Acquisition to our shareholders and I look forward to working with Eric and the Nyetimber team as we continue our journey to build a luxury international spirits brand.”
