Tom Wilmes
Four Roses Master Distiller Brent Elliott
Kirin Holdings Company, Limited announced Friday that it has agreed to sell its Four Roses Distillery to E. & J. Gallo Winery for approximately $775 million, with an additional $50 million contingent on Four Roses meeting certain revenue targets after the sale. The transaction is expected to close in the second quarter of this year.
Financial Times in October that Kirin was exploring the sale of Four Roses as part of a strategic pivot away from the struggling spirits sector in Japan and toward its growing healthcare business.
“Since our acquisition of Four Roses in 2002, the brand has experienced strong growth, primarily in the U.S. market, and contributed significantly to Kirin’s enterprise value,” the company said in a statement announcing the sale. “At the same time, Kirin regularly reviews its balance sheet and business portfolio from a medium- to long-term perspective. After careful consideration, we decided to transfer Four Roses to Gallo, which will allow us to reallocate resources to businesses that can grow by leveraging Kirin’s organizational capabilities and further enhance enterprise value.”
Founded in 1888, Four Roses operates a distillery and visitor center in Lawrenceburg, Kentucky, along with a bottling and warehouse facility, and a second visitor center in Coxs Creek near Bardstown. The brand underwent a $55 million expansion in 2015.
Gallo, in its statement, said it plans to maintain current operations, production, and distribution. “We’re incredibly excited about this acquisition and the opportunity to welcome Four Roses into our portfolio,” the company said.