Johannesburg - Distell, South Africa’s biggest wine producer, will expand in the US with an agreement to combine spirits with that of family-owned Terlato Wine.
The two companies will jointly own the new unit, which will be called Terlato Artisan Spirits and start trading in February, Stellenbosch-based Distell said in an emailed statement after the market closed on Wednesday. Lake Bluff, Illinois-based Terlato will also import four Distell wine brands, including Nederburg and Two Oceans.
“The new operation establishes us as an important and relevant US player in the artisan spirits business and presents us with a great opportunity to grow,” Steven Nathan, managing director of Distell International, said in the statement.
Distell spirits to be part of the deal include whiskies Bunnahabhain and Tobermory and the liqueur Amarula.
The company’s shares have gained 31 percent this year, giving it a market value of R40 billion ($2.8 billion).
BLOOMBERG