Friday, October 21, 2011
MGP Acquires LDI Distillery.
LDI, the mysterious former Seagram’s distillery that makes Redemption Rye, Templeton Rye, Bulleit Rye, and several other popular whiskeys, has finally been sold. When the deal closes, its new owner will be MGP Ingredients, Inc. The press release issued today by MGP can be found here.
‘LDI’ is an abbreviation for Lawrenceburg Distillers Indiana, which is located in Lawrenceburg, Indiana, just west of Cincinnati.
Followers of this space have read about LDI before, such as here and here. A sale has been anticipated for most of this year.
Although MGP has not announced its specific plans for the facility, MGP is a public company so greater transparency is likely going forward. MGP, which stands for ‘Midwest Grain Products,’ is a long-time and well-regarded supplier of grain neutral spirits (GNS) to the beverage alcohol industry. That suggests that they will continue and probably increase LDI’s production and sale of bulk whiskey, which will be welcome news to the many non-distiller producers who rely on LDI for their products.
Based in Atchison, Kansas, MGP has a major GNS distillery in Pekin, Illinois, near Peoria.
MGP is buying the distillery and related assets but not the nearby bottling plant, which is being sold separately. According to MGP, that deal is imminent and the distillery sale is conditional on its completion.
Not mentioned in the press release is another associated asset, LDI’s grain division in Rushville, Indiana.