Gin and spirits supplier British Honey Company (LON: BHC) is acquiring Union Distillers for an initial £8m in cash and shares. This adds to the range of brands that Aquis Stock Exchange-quoted British Honey owns and provides scope for significant expansion.
The deal will give British Honey greater scale and Union Distillers will be able to use the group’s software. The group will also have greater opportunities in the UK off-trade.
The enlarged group production capacity will be three million bottles, seven million cans and five million miniatures. There is potential for cross-selling brands.
Union Distillers has £250,000 in cash, while British Honey had £2.4m at the end of 2020 – although it has been declining because of continued cash outflows. A British Honey share issue raised...