The liquor manufacturer controlled by Diageo, United Spirits Limited (USL), announced on Thursday (June 19) its decision to take full ownership of NAO Spirits & Beverages Private Limited, known for its premium Indian craft gin brands, Greater Than and Hapusa, valued at an enterprise price of ₹130 crore (approximately $15.2 million).
USL’s board has consented to acquire 37,683 equity shares from NAO’s current shareholders in two phases for a combined amount of ₹53.8 crore, in addition to a new subscription for 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS) for ₹56 crore.
These deals, anticipated to finalize by June 27, 2025, will elevate USL’s ownership from 30% to 97.07%, effectively making NAO a subsidiary. The final 3% is expected to be secured by June 2026, completing the acquisition process.
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NAO Spirits recorded a net turnover of ₹34.83 crore in FY24 and boasts a net worth of ₹18.21 crore, operating within the craft alcoholic beverages sector and marketing its offerings both locally and globally.
The funding for the acquisition will comprise a mix of upfront and deferred cash payments. USL has also greenlit additional investments of up to ₹20 crore to bolster NAO’s working capital and support operational growth.
While the new equity and CCPS subscription counts as a related party transaction due to NAO being an associate company, the acquisition of shares from existing shareholders does not fall under that category. The transaction is subject to standard closing conditions per the share purchase agreement.
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Praveen Someshwar, MD and CEO of Diageo India, stated, “Ventures, Diageo India’s investment division, is committed to enhancing our portfolio by investing in innovative alco-bev startups. This enables us to provide consumers with a diverse range of products that align with their evolving tastes. The acquisition of NAO Spirits, a promising portfolio company within our Ventures division, reflects a significant move in pursuing future growth prospects in Indian craft spirits.”
Shares of United Spirits Ltd concluded at ₹1,460.95, reflecting a decrease of ₹1.25, or 0.085%, on the BSE.
(Edited by : Shoma Bhattacharjee)
