The craft beverage accelerator Mighty Craft is taking over the South Australian Adelaide Hills Group for $ 47 million. Brands include Adelaide Hills Distillery, Mismatch Brewing Co, and Hills Cider.
The agreement includes a 75 percent ownership of the LOT.100 venue – a target distillery, basement door, restaurant and event center on 84 acres in the Adelaide Hills.
As part of the deal, Adelaide Hills co-founder Sacha La Forgia, Hills Cider co-founders Toby Kline and Steve Dorman, and Mismatch Brewing Co & LOT.100 co-founder Ewan Brewerton will be acquired as they continue to grow for the brands.
Mark Haysman, Managing Director of Mighty Craft, said the expanded craft beverage portfolio will create cross-market opportunities that will bring the Mighty Craft business the size, synergies and profitability it needs.
Mighty Craft CEO Mark Haysman.
“The merger of the two businesses will result in Mighty Craft sales increasing 57 percent in FY22 with projected EBITDA in FY22 of $ 6 million, bringing immediate profitability to the Mighty Craft model,” said Haysman.
“This larger scale and the ability to achieve significant efficiency gains will truly leverage our operating platform and improve Mighty Craft’s ability to accelerate the growth of new and existing craft businesses, cement our market position and become a real competitor in craft beverage make. “Industry,” he says.
The acquisition, consisting of a cash payment of $ 27 million and $ 20 million in Mighty Craft stock, is expected to transform Mighty Craft into a scaled-up alcohol producer, wholesaler, retailer and one of the largest craft spirits manufacturers in Australia.
Sacha La Forgia of Adelaide Hills Distillery said the team is excited to partner with Mighty Craft.
“Our shared cultural values, our vision and our entrepreneurial and innovative approach to growing craft beverage companies make Mighty Craft a very compatible solution for our brands and our employees. We joined forces because we believe that the two companies are stronger together and that they can really do something special in the years to come, ”said La Forgia.
ASX-listed Mighty Craft has also announced a $ 29 million capital increase to pay for the acquisition.