MGP Ingredients, Inc. (MGPI) has announced that it has acquired Penelope Bourbon in a $215.8 million deal, including incentives. The acquisition will add to MGP’s extensive portfolio of award-winning bourbon, whiskey and course rye, giving them control of one of the most recognizable new brands in the industry. Let’s dive into the deal as MPG acquires Penelope Bourbon.
Penelope Bourbon will continue to operate independently from MGP and will maintain their existing team, structure, and production standards. This ensures that Penelope’s iconic products can still be enjoyed by whiskey enthusiasts around the world.
Who is Penelope Bourbon?
Penelope Bourbon has been a pioneer in the whiskey industry, introducing new tastes and styles of bourbon. Their unique recipes have won them numerous awards over the years, and they’re well-known for their commitment to quality. The acquisition will give MGP access to Penelope’s innovation and expertise, as well as exclusive access to some of their most sought-after recipes.
Penelope Bourbon was born from a classic American tradition of celebrating the arrival of a baby. When Mike Paladini and Kerry discovered they were expecting a daughter, Penelope, in 2018, Mike knew he wanted to create a spirit that celebrated life’s everyday joys. Together with his childhood friend and neighbor, Danny Polise, they embarked on a journey to create a Straight Bourbon Whiskey that would please everyone.
Their hard work paid off, and today Penelope Bourbon is available in over 27 states and four countries. Their success proves that with dedication and passion, anything is possible. So toast to life’s little victories with a sip of Penelope Bourbon!
Who is MGP Ingredients?
Back in 1941, the MGP distillery started out small as a humble grainbelt operation. But boy, have they come a long way since then! They’ve been steadily growing and expanding over the years, even acquiring Luxco Inc. just this year in 2021. Today, MGP isn’t just one distillery, but many across the world, offering everything from tasty branded spirits for you to enjoy, to top-of-the-line distilling solutions that producers can trust. Plus, they even provide specialty wheat proteins and starches for those who need ’em. MGP has certainly made a name for themselves in the world of high-quality spirits and ingredients.
MGP has long been a leader in the whiskey industry, with award-winning brands and iconic limited-edition whiskeys. As MGP acquires Penelope Bourbon, the addition to its portfolio strengthens MGP’s position as one of the leading purveyors of bourbon and whiskey in the world. With this acquisition, MGP has solidified its place as an increasingly significant player in the industry.
MGP and Penelope Bourbon Deal Highlights
- Enhances presence in growing American Whiskey category
- Expands portfolio of premium-plus price point brands
- Leverages Branded Spirits national distribution platform to extend Penelope’s reach
- Current MGP Distilling Solutions customer
- Expected to be immediately accretive to Branded Spirits segment gross margin and consolidated adjusted basic earnings per share after close
- Anticipated total cost synergies of approximately $5 million by December 31, 2025
- Transaction is anticipated to close in June 2023
What does this mean for the customer and MGP?
This acquisition is a win-win for both MGP and Penelope Bourbon first and foremost. Customers can expect a wider range of distribution, and perhaps an increased selection of flavors and styles that will be available in more places than ever before.
MGP also stands to benefit from the addition of Penelope’s innovative approach and dedication to quality. This acquisition will help MGP stay competitive in an ever-changing market, while expanding its reach and increasing its presence in the premium-plus price point.
“We are excited to welcome Penelope as part of our expanding premium-plus brand portfolio,” said David Colo, President, and CEO of MGP Ingredients. “This acquisition aligns well with our premiumization 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 bourbon industry is evolving as new brands and tastes emerge. AsMGP acquires Penelope Bourbon, MGP Ingredients has placed itself at the forefront of that evolution, ensuring its continued success in years to come.
This acquisition is just another sign of MGP’s commitment to providing customers with the best and most diverse selection of premium whiskeys available. We can’t wait to see what new flavors and products this partnership brings!
MGP Acquired Luxco in 2021
In addition to the news thatMGP acquires Penelope Bourbon, MGP Ingredients also announced the acquisition of Luxco in 2021. This move will expand their portfolio of whiskey and distilled spirits with some of Lux Row Distillers most popular brands, including Ezra Brooks, Rebel Yell, and Blood Oath. In addition, this acquisition gives MGP access to Luxco’s extensive distribution system, allowing them to get their products into even more markets.
The acquisition of Penelope Bourbon and Luxco represent a major milestone for MGP Ingredients as they continue to build upon their strong portfolio of award-winning whiskeys and bourbons. With these acquisitions in place, MGP is well positioned to remain a leader in the whiskey industry for years to come.
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