Spirits Maker Castle Said to Weigh Sale Amid Takeover Interestby , , and
Company working with Perella Weinberg on potential sale
Castle Brands has drawn interest from Constellation, Sazerac
Castle Brands Inc., a producer of whiskey, vodka and other spirits, is exploring a sale and may draw interest from potential buyers including Corona-maker Constellation Brands Inc. and Sazerac Co., according to people familiar with the matter.
The New York-based company is working with advisers at Perella Weinberg Partners on a potential sale, the people said, asking not to be identified as the information is private. Castle Brands may also attract bigger rivals, such as Diageo Plc, the world’s largest distiller, and Pernod Ricard SA, the people said. Heaven Hill Distilleries Inc. may also consider a bid, the people said. Castle Brands had a market value of about $260 million at the close of trading on Tuesday.
No final agreements have been reached and the sale process may not result in a deal, the people said. Representatives for Perella Weinberg, Constellation, Sazerac, Diageo, Pernod Ricard and Heaven Hill declined to comment. Castle Brands didn’t immediately respond to requests.
Castle Brands rose 11 percent to $1.77 in New York trading at 1:33 p.m. after earlier gaining as much as 19 percent, the biggest intraday jump in almost a month.
Sales of distilled spirits in the U.S. may outperform the 3.7 percent annual growth rate they’ve maintained since 2007 on the back of reduced regulatory restrictions on product availability under the Donald Trump administration and new emphasis on luxury and super-premium products, according to a report from Bloomberg Intelligence.
Castle Brands manufactures a variety of premium alcoholic beverages including Jefferson’s Bourbon and Knappogue Castle Whiskey. The company posted a 6.4 percent increase in third-quarter revenue to $18.3 million from a year earlier.