Listed craft drinks marketer Mighty Craft is to acquire Adelaide Hills Group craft beverage businesses – Adelaide Hills Distillery, Mismatch Brewing and Hills Cider.
The $47 million deal will also include 75 per cent ownership of Lot.100, the 84ha property in the Adelaide Hills which is home to the brewery, distillery, restaurant, and juice plant. MIghty Craft will also add Adelaide Hills Distillery’s 78 Degrees range to its portfolio of whisky brands.
The acquisition will make Mighty Craft a scaled alcohol producer, wholesaler, and retailer, as well as one of the largest craft spirit producers in Australia
“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,” said Mark Haysman, MD at Mighty Craft. It brings immediate profitability to the Mighty Craft business model.
Adelaide Hills Group co-founders Sacha La Forgia, Ewan Brewerton, Steve Dorman and Toby Kline, will remain working for the businesses to further grow these brands.
“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,” Haysman said.
Having the specialised production and management from the Adelaide Hills-based businesses in Mighty Craft to help integrate the brands, from a production, distribution, and sales and marketing perspective, was an essential part of the deal, he added.