Tilaknagar enters exclusive talks to acquire Imperial Blue

Tilaknagar Industries has reportedly entered exclusive negotiations to acquire the Imperial Blue whisky brand from French spirits giant Pernod Ricard.

If the deal goes through, Tilaknagar is expected to finance the acquisition through a mix of debt and equity. While the media report did not confirm the deal’s valuation, previous estimates have placed it between $600 million and $650 million.

Tilaknagar has been a leading contender for the acquisition since last year. Although the company ventured into the whisky segment in 2012, its business remains dominated by brandy, which accounts for over 90 percent of its total sales. Acquiring Imperial Blue, India’s third-largest whisky brand would mark a significant milestone in its diversification strategy.

Earlier, a few media outlets stated that Japanese liquor major Suntory had revived its interest in acquiring Imperial Blue, after previously backing out due to Pernod Ricard’s reported $1billion valuation. Inbrew Beverages, led by London-based entrepreneur Ravi Deol, is also said to be in the race.

Launched in 1997 by Seagram, Imperial Blue became part of Pernod Ricard’s portfolio in 2001. As per an estimate, Imperial Blue currently holds an 8.6 percent share of the Indian whisky market, trailing behind McDowell’s and Royal Stag.