Buoyant Irish whiskey sales means Paddy takeover unlikely to be the last
US-based whiskey distiller Sazerac has closed a deal to buy Paddy, the fourth most popular Irish whiskey by sales, for a price understood to be €90m.
Pernod Ricard's affiliate Irish Distillers confirmed on May 3 that it had entered into exclusive talks with New Orleans-based Sazerac to sell Paddy.
Paddy will continue to be produced at Irish Distillers' Midleton Distillery following the sale, alongside the group's other big brands including Jameson and Powers.
Pernod Ricard said the sale fits with its strategy to simplify its portfolio.
Sazerac, on the other hand, has been on the acquisition trail.
Earlier this year it bought assets including flavoured whiskey drink Southern Comfort and Tuaca, an Italian liqueur, in a $544m deal from Brown-Forman Corp, the maker of Jack Daniels.
Paddy Irish Whiskey sells around 200,000 nine-litre cases across 28 countries every year.
Its popularity is expected to grow in line with the Irish whiskey industry, which is expected to expand by 100pc by 2020.
Last night Irish Distillers said the sale of Paddy Irish Whiskey had been signed and completed.
The value of the transaction was not disclosed, but papers filed with the Companies Office earlier this year indicate that Irish Distillers had placed a €90m valuation on Paddy as a standalone asset.
Little known here, Sazerac produces a huge range of American bourbon, whiskey-based drinks and cocktails.
The sale follows John Teeling's sale of Cooley to Jim Beam for $95m in 2011, C&C's sale of Tullamore Dew to William Grant as part of a €300m deal and Bushmills' sale by Diageo to tequila-maker Jose Cuervo.