McDowell picks up 85 per cent stake in Triumph

BANGALORE: McDowell on Tuesday announced acquisition of 85 per cent equity stake in Triumph Distilleries and Vintners Private Ltd., (Triumph), from financial investors in a composite transaction valued at approximately Rs 60 crore.
The remaining 15 per cent would continue to be held by Deepak Roy who would act as President and CEO of Triumph with day-to-day management responsibilities, a McDowell release said.
McDowell additionally has a call option on the 15 per cent equity held by Roy at the end of two years, it said, adding, the call option would be exercised at a valuation to be carried out by a mutually accepted valuer.
It was noted that Roy representing Triumph and a group of investors had successfully acquired the Gilbey''s Green Label brand of whisky and other assets from Diageo Plc. McDowell, amongst others, was also a bidder.
The transaction was approved at a meeting of the Board of Directors of McDowell here today.
Under the agreement with Roy, McDowell would nominate four out of six directors of Triumph including the Chairman. There shall be two nominees of Roy.
"McDowell''s nationwide manufacturing and distribution facilities will substantially increase the existing profits of Rs 15 crore per annum generated by the acquired brands", said McDowell Chairman Vijay Mallya.
Mallya added that the addition of two million cases in sales volumes would propel UB Group''s Spirits Division closer to the number four position in the world of international distillers.