Diageo has sold Windsor Whisky to Bayside and Metis for £124 million
The transaction will be fiscal and finalised by 2023. Diageo has agreed to sell its Windsor Whisky brand to Bayside Private Equity and Metis Private Equity for 200 Billion KRW, or roughly £124 million. The sale will include an area of the premium scotch brand that distributes the W series.
The 10 year-supply agreement
As part of this deal, Diageo will continue to provide Scotch whisky to Bayside and Metis for the next 10 years. Because the deal becomes fiscal in 2023 it should have no effect on the earnings per share for this year 2022.
Diageo make their statement
Sam Fischer, President of Asia Pacific and Global Travel for Diageo said:
“This transaction marks the next chapter for Diageo Korea. We remain fully committed to the market and further developing our international spirits and beer business, which is being driven by premiumisation and consumer interest in categories like international whisky.”
Additionally, Fischer went on to state:
“We take a disciplined approach to capital allocation and this sale is very much in line with our track record of active portfolio management. We are grateful to our Diageo Korea employees for all their dedication and support of the Windsor business and we will work with them, the Union, our valued customers and partners, and Bayside/Metis to ensure a smooth transition.”
This is a rather exciting acquisition as the premier blended scotch has been established since 1996. The scotch although named after the historic town in the UK, Windsor 17-year-old whisky has only been available to purchase through sellers in East Asia. Perhaps under new ownership, we could expect more bottles to be imported to the UK.
How does Bayside/Metis feel about the acquisition?
The CEO of Bayside Private Equity for Bayside/Metis, Bum Jun Kim, said: “Windsor is an important addition to our investment portfolio and allows us to participate in the dynamic Korean beverage alcohol market.”
In the same message Bum Jun Kim saw this as a chance to “unlock further potential” in the brand.
Our thoughts on the sale
Here at Whisky Investments, we keep a close eye on any movements in the spirit industry. We know Diageo as one of the biggest global leaders in this market. So it’s always interesting to see them part with a brand instead of acquiring something new.
It is additionally interesting to see this as Windsor has been “Koreas best selling scotch since 2006”.
For more news surrounding the whisky industry and for future updates on this article. Check out our up to date whisky news.
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