Craft drinks accelerator Mighty Craft will acquire South Australia’s Adelaide Hills Group for $47 million. Its brands include Adelaide Hills Distillery, Mismatch Brewing Co and Hills Cider.
The agreement includes a 75 per cent ownership of the LOT.100 venue – a destination distillery, cellar door, restaurant, and function centre located on an 84-hectare property in the Adelaide Hills.
As part of the deal, Adelaide Hills co-founder Sacha La Forgia, Hills Cider co-founders Toby Kline and Steve Dorman, and Mismatch Brewing Co & LOT.100 co-founder Ewan Brewerton, will be retained as they continue to drive growth for the brands.
Mighty Craft managing director Mark Haysman said there will be cross-market opportunities created by the enlarged craft beverage portfolio, bringing the required scale, synergies, and profitability to the Mighty Craft business.
“The combination of the two businesses will mean Mighty Craft’s revenue is forecast to grow by 57 per cent in FY22 with forecast EBITDA in FY22 to be $6 million, bringing immediate profitability to the Mighty Craft model,” said Haysman.
“This increased scale and the opportunity to realise significant efficiencies will truly leverage our operating platform and enhance Mighty Craft’s ability to accelerate growth of new and existing craft businesses, as well as consolidating our market position, and making us a real competitor in the craft beverage industry,” he says.
The acquisition consists of a $27 million cash payment and $20 million in Mighty Craft’s shares, and is set to transform Mighty Craft into a scaled alcohol producer, wholesaler, and retailer, as well as create one of the largest craft spirit producers in Australia.
Adelaide Hills Distillery’s Sacha La Forgia said the team was excited to join forces with Mighty Craft.
“Our shared cultural values, vision and entrepreneurial and innovative approach to growing craft beverage businesses makes Mighty Craft a highly compatible fit for our brands and our people. We have joined forces because we believe the two businesses are stronger together and can really create something special over the coming years,” said La Forgia.
ASX-listed Mighty Craft has also announced a $29 million capital raise to help pay for the acquisition.
