Sazerac raises a toast with John Distilleries stake buy

Sazerac, a family-owned spirits company in the US, has completed its two-part acquisition of a significant minority stake in John Distilleries Pvt Ltd (JDPL), a leading liquor maker in India.

Sazerac has acquired the 20% stake that private equity investor Gaja Capital still held at a valuation of 1,000 crore, said people aware of the development, taking its overall holding to 43%.

Gaja Capital founder and managing partner Gopal Jain confirmed the development but declined to disclose details. Sazerac declined to comment while John Distilleries didn't respond to queries.

Sazerac acquired a 23% stake in John Distilleries from Gaja Capital in October last year, marking its entry into India. Paul John, chairman and managing director at John Distilleries, holds the remaining 57% stake.

Gaja Capital, which invested about 75 crore in John Distilleries in 2011-2013, has made a fivefold return through the exit, said one of the people mentioned above.

With sales of more than 15 million cases, John Distilleries is also the manufacturer of the world's seventh-largest whisky brand - Original Choice Whisky, with sales of 11 million cases a year. Paul John, a single malt whisky from John Distilleries, has been gaining a reputation in the niche market. Its other major brands include Bangalore Malt, Black Pelican Fine Whisky, Mont Castle French Grape Brandy and Big Banyan Wines. Bengaluru-based John Distilleries had a gross revenue of over 3,000 crore in FY18.

Sazerac is the second-largest family-owned spirits company in the US.

It owns brands such as Buffalo Trace Bourbon, EH Taylor Bourbon, Fireball, Pappy Van Winkle Bourbon and Southern Comfort.The purchase gives Sazerac a foothold in one of the top alcohol markets in the world with annual sales of $38 billion.

In November, it had acquired about 19 iconic brands from Diageo including Seagram's VO & Seagram's 83, Myers's Rum, Popov Vodka, John Begg blended Scotch and Peligroso Tequila in a deal worth $550 million.

Gaja Capital recently put preschool chain EuroKids, on the block, seeking an exit from its five-year-old investment. Gaja Capital and Swiss fund Partners Group together hold about 75% stake in EuroKids, which has a network of 1,000 schools across the country. EuroKids also owns the Kangaroo Kids and Billabong High chains.

Founded in 2004, homegrown Gaja Capital manages assets of about $500 million across three funds. It has invested in Jiggs Kalra-owned Massive Restaurants, RBL Bank, broking network Bonanza, TeamLease, Bakers Circle, Carnation, Kinara NBFC, Suryoday and Avendus.

Source:-https://economictimes.indiatimes.com/industry/cons-products/liquor/sazerac-raises-a-toast-with-john-distilleries-stake-buy/articleshow/67342823.cms