One of the world’s largest beverage conglomerates just got a bit bigger.

Diageo announced its acquisition of Texas-based Balcones Distilling on Wednesday. The craft distiller, founded in 2008, is one of the most prominent producers of American single malt whiskey.

While Balcones Distilling isn’t the first craft distiller in Texas, it’s widely considered one of the earliest and most well-known. Locally-sourced ingredients are key for the brand’s offerings, including Texas “1” American Single Malt, Lineage American Single Malt, and Baby Blue Corn Whisky.

According to a Nov. 2 press release, Diageo utilized existing cash resources in the acquisition, citing the rapid expansion of the whiskey category as a motivation for the deal.

“We are delighted to welcome Balcones Distilling into Diageo,” Diageo North America president Claudia Schubert states in the release. “This acquisition is in line with our strategy to acquire high-growth brands in fast-growing segments, such as super-premium whisk(e)y, and we look forward to working with the Balcones team to support further growth for these world-class whiskies.”

Balcones Distilling’s chairman Greg Allen hopes the acquisition will lead to the further expansion of Texas distilling.

“Balcones started with an idea driven by an innovative spirit and passion to create something original and authentic in the heart of Texas. Now, we couldn’t be prouder to have created these award-winning American Single Malt and Texas whiskies, but also to have helped initiate an exciting new era of whisk(e)y in Texas,” Allen states in the release. “We are thrilled that Diageo shares our belief in its potential and we look forward to seeing Diageo bring Balcones’ incredible whiskies to more consumers.”

The acquisition price was not included in the press release.

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