Louisville-based private equity firm Blue Equity has acquired all 15 Liquor Barn stores in Kentucky — including six Lexington locations — from Liquor Stores N.A. Ltd., a publicly traded company based in Edmonton, Alberta, Canada.
The transaction generated gross proceeds of approximately $26.15 million for Liquor Stores N.A. Ltd. on closing, according to the company, with an additional $3.3 million payable in March 2021 pursuant to an earn‐out arrangement.
The sale is part of Liquor Stores N.A. Ltd’s strategy to divest itself of its assets in the lower 48 states and focus instead on its core markets of Alberta, B.C., and Alaska, according to a statement. In addition to its 15 stores in Kentucky, the company is also in negotiations to sell two Liquor Barn locations in New Jersey, as well as a store in Norwalk, Connecticut.
Blue Equity currently owns and operates multiple Party Mart Stores in Louisville, and recently formed Blue Rose Spirits, LLC to make the investment in Liquor Barn. The deal creates the largest locally owned and operated retail chain of spirits, beer, wine and party goods in Kentucky. All Liquor Barn operations will relocate and be based in Louisville.
“The acquisition of the Liquor Barn assets is the perfect next step in our quest to become the leading retailer for spirits, beer, wine and other products to our loyal and growing customer base in Kentucky and beyond,” Jonathan S. Blue, chairman and managing director of Blue Equity, said in a statement. “We will also be able to secure nearly 175 full time jobs for the Commonwealth and build on the $10 million annual payroll base as we continue to grow the business.”
Blue Rose Spirits consists primarily of a partnership between Blue Equity and Vince Rosenblatt. Rosenblatt previously partnered with Blue Equity to invest in Angel’s Envy bourbon, which was sold to Bacardi Limited in 2015.