WHYTE & MACKAY DISTILLERS
United Spirits part of the Indian U.B. Group and owner of Whyte & Mackay has sold more cases in the year ending March 2009, but a drop in profits of 4 ½ %
The reason the high interest which they have to pay for the $ 600 million in 2007 to buy W & M
A company within the U B Group sold 10.2 % shares from United Spirits.United Spirits had already paid back $ 110 million and can now pay another $180 million back
There was a rumour that Diageo should buy a stake in United Spirits from Vijay Mallya, owner of United Spirits is said that he woold sell a minority stake of 49 %, and later it wasd said that he would sell Whyte & Mackay
W & M announces restructuring of their operations: no plant is closed but 100 out of a workforce of 560 in Scotland will be redundant
United Spirits is to sell new shares worth 190.000.000 - 220.000.000 Pounds to institutions to help reduce its debt pile of almost 890.000.000 Pounds
A large part of the debt was incurred in United Spirit's 595.000.000 Pounds acquisition of Whyte & Mackay Distillers in 2007
Vijay Mallya, would sell a stake in United Spirits to private - equity firms or Diageo of 15 %
It is said that at Whyte & Mackay Distillers, with the grain distillery Invergordon and the malt distilleries (Old) Fettercairn, Dalmore, Jura and Tamnavulin, about 90 jobs were under
treath in Scotland and 15 in other countries
WHYTE & MACKAY, het eigendom van United Breweries, (U B ) van de Indiase Vijay Mallya
Dalmore: 4.200.000 litres
(Old) Fettercairn :2.300.000 litres
Tamnavulin: 4.000.000 litres
Whyte & Mackay
Vivian Imerman is mulling a return to Whyte & Mackay. Picture: Ashley Coombes/Atom
SOUTH African tycoon Vivian Imerman is expected to return to Scotland's whisky sector if Diageo agrees to sell Glasgow-based Whyte & Mackay.
Imerman, a former chief executive of Whyte & Mackay, is considering an offer to buy back the business he sold six years ago if Diageo is forced to offload it to allay competition concerns. It would be an "important addition" to his current collection of spirits and beer businesses in Africa and Asia.
Known as "the man from Del Monte" from his time as chief executive of that business, Imerman and his former brother-in-law, Robert Tchenguiz, led a group of investors who acquired Whyte & Mackay in 2001 in a £200 million deal.
In 2007, they sold the business to Vijay Mallya's United Spirits for £595m. That deal reportedly netted Imerman £396m.
It included a restraint clause that has since expired which barred Imerman from buying back the business for five years.
"I have done as much as I can do with the company and I have maximised income," he said at the time of the sale. "The company either needed to be bought or buy a brand to sell into emerging markets."
Diageo acquired Whyte & Mackay when it bought United Spirits last year as part of a wider-ranging bid to boost its presence in emerging markets.
The world's largest distiller said earlier this week that it would sell most of Whyte & Mackay to alleviate concerns from the Office of Fair trading that the acquisition could lead to higher prices for blended whisky in the UK. As Whyte & Mackay is a major supplier of own-label blended whisky to supermarkets and other retailers, its products compete heavily with Bell's and other Diageo brands.
Diageo has said it is willing to sell Whyte & Mackay's grain distilleries, but would prefer to keep the company's Dalmore and Tamnavulin malt brands. The OFT is considering this proposal and has suspended referring the case to the Competition Commission.
Imerman set up private investment group Vasari in 2008 and has served as its chairman since then. It is focused on "opportunities in emerging and frontier markets in consumer packaged goods".
In a statement issued yesterday by Vasari, Imerman confirmed he was interested in buying back the brand.
"Whyte & Mackay would make an important addition to the portfolio of spirits and beer businesses in Africa and Asia where Mr Imerman has been concentrating his efforts through his company Vasari since his five-year restraint expired last year," the statement said.
"The W&M brand would be complementary to the strategy of acquiring and growing businesses in these regions to take advantage of rapid consumer growth."
Because the brand is not very strong, analysts say Whyte & Mackay is unlikely to fetch as high a premium as other spirits sales. Phil Carrol of Shore Capital reckons the price falls somewhere between the £200m paid for the business in 2001 and the £595m Imerman sold it for six years later.
"I would be surprised if they got to that top end, plus they won't be buying all of the business if the malts are taken out of the equation," Carrol said.
Whyte & Mackay
24 January, 2014
It's business as usual then at Whyte & Mackay - that is the Glasgow-based spirits producer is once more up for sale. Incredibly this is the 10th time since the beginning of the '70s and in those 40-plus years there have been no fewer than 18 MDs or CEOs come and go, and heaven only knows how many different marketing departments.
This time around the cause is Diageo's acquisition of a majority share in United Spirits - the Indian company which acquired Whyte & Mackay for a tad under £600 million back in 2007. Clearly anxious to avoid the scrutiny of the Office of Fair Trading, Diageo has made a pre-emptive strike with the announcement that it is to sell Whyte & Mackay but not lock, stock and smoking barrels - because apparently the world's number one multinational wants to keep the malt distilleries Dalmore (pictured) and Tamnavulin, but is OK with W&M's other distilleries - Old Fettercairn and Jura - going under the hammer.
As Diageo already boasts some 28 distilleries in its arsenal this decision has raised eyebrows in some quarters. "What on earth does it want Tamnavulin for? All its distilleries are expandable and it is pouring colossal amounts of investment into new distilleries like Roseisle," said one industry observer. "They must be a bargaining tool."
Both are good points. Tamnavulin is not a notable single malt and should the 'competition authorities' still chafe at Diageo's share of the Scotch whisky market creeping towards 40%, the drinks giant can offer up both Tamnavulin and Dalmore - which, as a singular spirit, has attracted a wide following among the single malt cognoscenti.
Of course Diageo's announcement has ushered forth a frenzy of speculation as to who will be the 11th owner of Whyte & Mackay. And there have been one or two comings and goings at the top which have added to the potpourri. Chief executive at the time of Diageo's bid for United Spirits, John Beard, has departed. His replacement, Bryan Donaghey, was previously managing director of Diageo Scotland until earlier this year when he moved to the role of Europe supply director, and finally to supply strategy director up until his decision to leave and almost in the same week he took up the reins at Whyte & Mackay.
Whyte & Mackay has offered no explanation for Beard's going and Diageo is tight-lipped over Donaghey, issuing a terse statement: "Bryan has severed his employment with Diageo and it is not appropriate for us to comment any further, but we wish him the very best for the future." The company did add that 'Bryan had served Diageo with 'distinction'. Clearly, though, 'Bryan' relishes the challenge as one would be forgiven for thinking he'd jumped out of the frying pan into the fire.
Just one more thing on Beard though. He came from the fused UK distribution arm of Bacardi and Brown-Forman, so perhaps it is no surprise that both Brown-Forman and Bacardi have been mentioned as possible Whyte & Mackay suitors, as has as has Greenall's owner Quintessential Brands, and there is speculation that there is growing interest among companies in China. How long is a piece of string?
US drinks giant Brown-Forman is understood to be one of several parties considering second-round bids for the Whyte & Mackay whisky business, expected to fetch around £350 million.
The bulk of Glasgow-based Whyte & Mackay is being sold by Indian billionaire Vijay Mallya's United Spirits to satisfy competition concerns arising from Diageo's purchase of a controlling stake in the Indian drinks firm.
There are thought to be five parties interested in acquiring the business, including SPI Group, owner of Stolichnaya vodka, Italy's Campari and private equity firms Lion Capital and TPG Capital Management were among the interested parties. Other media have reported that KKR was also bidding. Second-round bids are due on 17 April.
Brown-Forman came into the spotlight last week after a financial blog reported that the US maker of Jack Daniel's whiskey was eyeing French cognac maker Remy Cointreau.
In addition to Jack Daniel's, the Louisville, Kentucky-based company owns Southern Comfort and Herradura tequila.
Whyte & Mackay's latest financial report and accounts show that pre-tax profits rose 27 per cent to almost £33.6m in the year to end-March 2013 from £26.3m last time. Turn-over increased from £227.2m to £263.4m.
The profit was struck after exceptional charges of £1.9m relating to "onerous" lease provisions, property costs and some business restructuring.
Whyte & Mackay, whose other brands include Isle of Jura, Glayva and Claymore, said the lease provisions related to properties in Glasgow and Edinburgh that are vacant or sub-let at a discount.
An Office of Fair Trading (OFT) investigation last year said there was "substantial competition" in the retail sector between Bell's whisky, a Diageo label, and Whyte & Mackay's own-label and branded blended whisky.
The OFT concluded that the likely loss of competition could give rise to higher prices for retailers and consumers.
United Spirits, the Indian drinks group, has sold its Whyte & Mackay whisky business to Philippines-based rival Emperador in a deal that values the distiller at £430 million.
The Glasgow-based owner of the Fettercairn, Invergordon and Jura distilleries was put up for sale last year to appease competition regulators after Johnnie Walker parent company Diageo built up a stake of almost 28 per cent in United Spirits.
In April, Diageo launched a £1.1 billion bid to take control of United Spirits as it seeks to grow its presence in the world's largest market for whisky.
If successful, the tender offer would see Diageo - which also counts Smirnoff vodka and Tanqueray gin among its stable of brands - owning almost 54.8 per cent of India's largest spirits maker, which was previously controlled by tycoon Vijay Mallya.
Mallya, who remains as the firm's chairman, said today: "I am very proud of what Whyte & Mackay had achieved under United Spirits' ownership.
"Moreover, I am delighted to be able to pass on Whyte & Mackay into the hands of a new owner who is committed to realising the full potential of the business and whose vision for Whyte & Mackay is aligned with that of United Spirits."