SHARES of Glenmorangie, the Scotch whisky distiller, jumped 25 per cent yesterday after the company confirmed it had put itself up for sale.
Responding to a report in The Times, the group announced that the Macdonald family had decided to sell its 52 per cent stake, triggering a sale of the company. It added that several potential bidders had already been sounded out.
One of the early favourites is Brown-Forman, the US owner of Jack Daniel’s, which distributes the Scotch distiller’s single malts in several countries and has a 10 per cent stake. Also tipped are Bacardi, LVMH of France, and Angostura, the Caribbean owner of Burn Stewart Distillers. Lack of synergies is expected to rule out private equity firms, while neither Diageo nor Allied Domecq is thought to be interested.
Paul Neep, chief executive, admitted he had considered a management buyout, but added: “The value that can be obtained from selling to another company is much greater than the value than can be achieved from an MBO.”
Analysts reckon the distiller could fetch up to £300 million. Glenmorangie’s A shares added 272½p to £13.30. The B shares were up 425p at £21.12½.