Premium producer MGP Ingredients announced that its subsidiary Luxco is acquiring bourbon bottling company Penelope Bourbon on Tuesday, according to a company press release. The acquisition — which includes 100 percent of Penelope’s equity and intellectual property — is valued at an initial $105 million, with up to a $110.8 million cash payout expected if certain “performance conditions” are met. The acquisition is expected to close next month.

“Since our initial product launch in 2019, it has been amazing to watch consumers embrace our brand,” says Penelope COO and co-founder Daniel Polise in the release. “We look forward to expanding our partnership with MGP and building on our legacy,”

Penelope Bourbon was founded in 2018 by Michael Paladini and Polise, and is currently distilled at MGP’s distillery in Lawrenceburg, Ind. The brand itself is located in New Jersey and produces around 50,000 cases of bourbon each year, according to The Bourbon Culture. The whiskey review site also states that in 2023, Penelope’s growth year-over-year increased by a whopping 166 percent — making this acquisition a lucrative move on MGP’s part. The deal also gives Penelope greater access to MGP’s barrels and production infrastructure, potentially lowering production costs.

The transition supports MGP’s goals of adding more premium labels to its portfolio.

“We are excited to welcome Penelope as part of our expanding premium-plus brand portfolio,” said David Colo, president and CEO of MGP Ingredients. “This acquisition aligns well with our premiumization strategy and our focus on growing high potential, high margin brands. Penelope is an excellent addition to our Branded Spirits portfolio as we look to expand its availability throughout our national distribution platform.”

Penelope’s lineup of four core spirits and innovative limited releases are now available in more than 30 states and four countries. The brand’s Takaji Cask Finish Rye was chosen as one of VinePair’s Top 50 spirits in 2022.

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