South Africa's largest wine and spirit producer, Distell Group Ltd, is planning to acquire Scotch whisky maker Burn Stewart Distillers Ltd. The price tag for the sale is 2.2 billion rand or US$244 million.
The company had signed a binding agreement with CL World Brands Ltd and Angostura Ltd for Burns Stewart. The latter owns three malt whisky distilleries, according to Distell which is based out of Stellenbosch, South Africa.
Exports of scotch whiskey rose by 87% to GBP4.3 billion or US$6.6 billion in the past ten years according to records of the Scotch Whisky Association. Single malt exports have increased by 190% to GBP778 million pounds in the last decade.
According to statement from Distell, "The acquisition of Burns Stewart provides Distell access to this highly attractive growing category. Burn Stewart's strong presence in the UK, Taiwan and other countries provides Distell with enhanced sales platforms and route to market opportunities."
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