Kirin is selling Four Roses Distillery to wine giant Gallo. The deal, valued at up to $775 million, is expected to close in the second quarter of this year, Kirin said in a release. California-based Gallo said no changes are planned in operations, production or distribution once it acquires the Four Roses brand, produced in Lawrenceburg in the heart of Kentucky bourbon country.
“As we move through the regulatory process and await a closing date, we’re incredibly excited about this acquisition and the opportunity to welcome Four Roses into our portfolio,” Gallo said in a statement.
Founded in 1933 by brothers Ernest and Julio Gallo, Gallo is a family-owned company with an extensive portfolio in wine, spirits, malt beverages and ready to drink products. Kirin said Four Roses has achieved strong growth, primarily in the U.S., since it acquired the brand in 2002.
“Kirin regularly reviews its balance sheet and business portfolio from a medium to long term perspective,” it said. “After careful consideration as part of this review, Kirin decided to enter into an agreement to transfer the business to Gallo. This transaction will allow Kirin to reallocate its resources toward businesses that could further grow by leveraging Kirin’s own organisational capabilities.”
Some years back, Four Roses Distillery completed a $55 million expansion that doubled production capacity. The iconic brand was a post-Prohibition powerhouse but disappeared from American shelves as a Kentucky straight bourbon for decades. It’s only been since Kirin purchased Four Roses that the brand’s straight bourbons returned to American bars and liquor stores.