MGP Ingredients will draw on existing revolver for Luxco acquisition

Chicago, Jan. 25 – MGP Ingredients Inc. will draw down on its existing revolving credit facility to fund the cash portion of the purchase price for its acquisition of Luxco, Inc., according to a press release.

The deal has an enterprise value of $475 million, made up of equal parts cash and stock.

Luxco shareholders will receive $238 million, subject to working capital, net debt and transaction expenses. Additionally, they will receive 5 million shares of common stock valued at approximately $238 million.

The transaction is expected to take place in the first half of 2021, subject to regulatory approvals and customary closing conditions.

MGP Ingredients produces and sells distillery and ingredients products and is based in Atchison, Kan. Luxco is a branded beverage alcohol company with net revenue of around $202 million for the 12-month period ended Oct. 31.

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