The Artisanal Spirits Company PLC (AIM:ART) has strengthened its whisky offering in North America with the acquisition of 100% of Single Cask Nation, which specialises in sourcing and bottling rare spirits.
An unspecified up-front payment could be enhanced with a “larger earn out of up to US$500,000” dependent on performance targets for this year and next.
The acquisition, which is being funded by Artisanal Spirits’ current debt facilities, is expected to be accretive to earnings per share in the first full year of ownership.
Single Cask founders Jason Johnstone-Yellin and Joshua Hatton will remain with the company and continue to lead the business from their offices in the US, supported by whisky industry veteran Steve Hawley, current president of the American Single Malt Whiskey Commission, who has also joined the group to help grow and expand its business in the US.
“We are acquiring a US business that is both complementary and incremental to our existing business,” the London-listed company said, adding that the deal builds on its geographical footprint and “secures a greater presence in the world's largest premium whisky market”.
Its existing Scotch Malt Whisky Society will continue to focus on Scotch malt whisky, while Single Cask Nation will develop a greater focus on American whiskey.
Chief executive Andrew Dane said: “This is also very much an investment in Jason and Joshua themselves who have cultivated a global following and stellar reputation as thought leaders in the world of whisky.”