MGPI to acquire distillery assets in Indiana
Oct. 24, 2011
by Eric Schroeder
ATCHISON, KAS. — MGPI of Indiana, L.L.C., a wholly-owned subsidiary of MGP Ingredients, Inc., has signed an agreement with Lawrenceburg Distillers Indiana, L.L.C. to acquire LDI’s beverage alcohol distillery assets located in Lawrenceburg, Ind., and used in the production of customized and premium grade whiskeys, gins and grain neutral spirits. The transaction, which is expected to close in the fourth quarter of 2011 or the first quarter of 2012, is estimated at about $15 million.
As part of the transaction, MGPI will acquire LDI’s distillery assets, related bulk barrel storage facilities, blending operations and a tank farm. The transaction does not include LDI’s assets related to packaging and bottling of alcoholic beverages, located adjacent to the distillery operation.
According to MGPI, the acquisition of LDI’s assets will bring significant new production capacity to its food grade alcohol area and enables MGPI to begin producing premium bourbon and corn and rye whiskeys, while also increasing its gin and grain neutral spirits output.
“We are extremely excited about the opportunity to acquire the LDI distillery, which is one of the largest beverage alcohol distilleries in the world,” said Timothy W. Newkirk, president and chief executive officer of MGPI. “The purchase is in response to the numerous requests from our customers to supply them with high quality whiskeys and bourbons, in addition to our premium vodkas and gins.”