This week our Irish Whiskey News features articles on Pernod Ricard finalising Castle Brands acquisition and Budget 2020 helps out smaller Irish distilleries.
So let’s see what’s happening this week in our Irish whiskey news.
The purchase, which was announced in August, saw Pernod Ricard buy a total of 150,335,952 shares of common stock from Castle Brands, each valued at US$1.27. Carried out through a subsidiary of Pernod Ricard, the acquisition will see Pernod Ricard take control of Jefferson’s Bourbon brand, Goslings Rum, Knappogue Castle Irish whiskey and others.
Alexandre Ricard, chairman and chief executive officer of Pernod Ricard, said: “We’re thrilled about the closing of the Castle Brands acquisition and the opportunity it offers us in the world’s largest spirits market, the US, a priority market for the group.” As a result of the tender offer and the merger, Castle Brands has become an indirect wholly-owned subsidiary of Pernod Ricard, and Castle Brands’ common stock will cease trading on the New York Stock Exchange.
Distilleries in Ireland welcomed plans to spur increased venture capital investment in startups, which includes dozens of distilleries that have launched in recent years. Vincent McGovern, head of the spirits division of Drinks Ireland, welcomed changes to the Employment and Investment Incentive (EII) scheme for stimulating venture capital investment in Irish firms.
Budget 2020 will allow EII investors to claim full income tax relief in the first year of their investment. It also allows investors to double their investment to a maximum of €500,000 if they stay invested for 10 years. Mr McGovern said these changes would “help smaller distilleries as they recognise the fact that they are not the same as other small companies and that the practicalities of setting up a whiskey distillery are different”.
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