Cooley sold to Jim Beam

[IainB]

Just heard a rumour to this effect. Anyone heard anything?

[IainB]

Here's something more concrete:

http://businessandleadership.com/busine ... uy-cooley/

[JohnM]

Janey mack.

[IainB]

$95m??? The Teelings will be smiling today!

What was Bushmills sold to Diageo for - Stg£200m I think?

[Luke Gough]

Here: http://www.rte.ie/news/2011/1216/cooley-business.html

[IrishWhiskeyChaser]

I wonder how it will affect the brands ... Beam also own Laphroaig ... is a good or bad thing for Connemara?

Will they continue with all stable brands currently available?

Will they continue supplying independents?

They have the clout to progress both distilleries immensely but will it be to the expense of fringe brands?

Will be very interesting how Beam proceed.

[JohnM]

They're buying it because of the growth potential of Irish whiskey, so I don't think they'll be holding it back in any way. It already has practically zero effect on Laphroaig sales, I'd say. I wouldn't know about the fringe brands. Maybe if they focus more sales in the US, they won't have the stock to supply others? Please keep in mind that I don't know what I'm talking about.

I suppose it means, as we probably know already, that William Grant won't be buying Cooley, so an extra distillery is even more likely.

[IrishWhiskeyChaser]

On the Laphroaig thing I was throwing it out there for ideas ... Another other slant is they might start making heavier peated batches on a more regular basis.

I suppose it means, as we probably know already, that William Grant won't be buying Cooley, so an extra distillery is even more likely.

Very good point also

Personally I think it is a very positive move from a growth perspective.

[uncle fester]

Good news for the industry as a whole but it might mean farewell to the fringe brands if they don't make enough dough.

[JohnM]

On the Laphroaig thing I was throwing it out there for ideas ... Another other slant is they might start making heavier peated batches on a more regular basis.

I suppose it means, as we probably know already, that William Grant won't be buying Cooley, so an extra distillery is even more likely.

Very good point also

Personally I think it is a very positive move from a growth perspective.

Maybe we'll get to own our own square foot of the Cooley Peninsula...

Hopefully it is good for Irish whiskey. Time will tell.

[Distiller]

I think it will be a good thing for Cooley, Kilbeggan, and Irish Whiskey. It was only a mater of time before someone big bought Cooley. I hope that this will be good for Cooley and consumers.

[JohnM]

It's had a very mixed reaction on the internet so far. I don't know if it's good or bad, but I'm hoping for the best.

[JohnM]

My imagination might be running away with me, but maybe it will ultimately lead to the Daly stills at Kilbeggan being fired up, if they increase production at Cooley to capacity.

[Tsolias]

Hello guys, it's been a while since I posted here, hope you are all well.

I'm wondering, am I the only one dissapointed with the news? I prefer independent small companies than big world players, with all the goods and bads this has.

[JohnM]

Hello guys, it's been a while since I posted here, hope you are all well.

I'm wondering, am I the only one dissapointed with the news? I prefer independent small companies than big world players, with all the goods and bads this has.

I have mixed feelings.

[John]

That's a bolt out of the blue for me! So much for the 'only Irish-owned distillery' claim to fame . A real pity in my opinion. The price tag it achieved also hardly makes it seem worth selling - 95 million dollars at the moment for a company that had serious potential sounds like a real bargain. I wonder why the 'sudden' rush to sell in this environment. I don't think this is a good thing at all. Terrible shame really.

[JohnM]

That's a bolt out of the blue for me! So much for the 'only Irish-owned distillery' claim to fame . A real pity in my opinion. The price tag it achieved also hardly makes it seem worth selling - 95 million dollars at the moment for a company that had serious potential sounds like a real bargain. I wonder why the 'sudden' rush to sell in this environment. I don't think this is a good thing at all. Terrible shame really.

Bushmills went for £200m, and it sells far more than Cooley, I'd imagine. Maybe the offer was there for a while, and once the euro weakened, they jumped. I have no idea, of course. And the euro may weaken further against the dollar down the road.

[John]

Currencies fluctuate all the time for sure, certainly the dollar is strong against the euro at the moment but those things matter less than eg. the manner in which they structure the offer/take-over. My opinion on this is that it is a really strange time to sell, also because they made such a massive deal over being the only independent, fully Irish distillery. As soon as someone came along with enough spare change to throw around they sold up and bailed out. I guess I was too beguiled by the patriotic mumbo jumbo being spouted that I forgot that the main man was just in there to make a reasonably 'quick' buck. Like I said, shame.
I hope at least the employees get looked after in all of this.

[TheWhiskeyBro]

A reasonably quick buck is a harsh assessment, this is a culmination of 25 years of effort by the owners/shareholders. Of course its sad to see it in foreign ownership but that's business. But Cooley is riding high at the moment, and it has been looking for a strategic partner on and off for a long time now.

Nobody is complaining in IDL at the support they get from Pernod Ricard. This could be the making of Cooley yet.

Good news for the category, in my view.

[John]

In the greater scheme of things, even 25 years is reasonably quick Leo. Also, in contrast with your IDL example, I'm sure there is an equal number of employees at Bushmills who regret the Diageo deal. All in all, as much as this is good news for Cooley shareholders (though I'm not really convinced it is), it is not so for the Irish whiskey enthusiast. Deals like this always come with non-compete clauses so it will be interesting to see what gets sidelined over time.

[IainB]

I really don't think you can call €76 million a bargain. The company only had sales of €16 million last year. There are very few businesses i can imaging selling for 5 times turnover, never mind profit, especially at the moment. Also as John pointed out it's interesting in the context of Bushmills, a much bigger brand. It's an interesting insight into how distilleries are valued if nothing else. Clearly the brand names and the huge levels of maturing whiskey are big considerations as well as the usual profit and turnover issues. Then again I'm an accountant so maybe I'm the only one who thinks this is interesting.

[IainB]

Of course when i was told Cooley had been sold i half expected the sentence to end with the words 'to Zoltan'.

[Good Whiskey Hunting]

Hopefully Cooleys won't loose their way under their new owners.

That's a bolt out of the blue for me! So much for the 'only Irish-owned distillery' claim to fame . A real pity in my opinion. The price tag it achieved also hardly makes it seem worth selling - 95 million dollars at the moment for a company that had serious potential sounds like a real bargain. I wonder why the 'sudden' rush to sell in this environment. I don't think this is a good thing at all. Terrible shame really.

Is the Dingle Whiskey Distillery an independent and Irish owned?They advertise that they will sell casks too.

[Fionnán]

my biggest fear is that they'll inject money and advertising resources into a connemara and tyrconnell range and that those nifty little cooley projects like bog oak, turf mor, and any SPS venture might get sidelined. Hopefully i'm worrying about nothing.

[DublinGus]

This has been on the cards for the last year or so. Beam have really got a good value deal, but a win win situation for the Teelings great business men no doubt. It's a pity they didn't hold on to Lockes and Kilbeggan! The gate has certainly been opened to the massive US market, sales should go through the roof.