Japanese conglomerate Kirin has sold its Kentucky-based bourbon supplier Four Roses Distillery to E&J Gallo Winery in a $775m (£570m) deal.
Since acquiring Four Roses in 2002, the business had “achieved strong growth… and contributed to the growth of Kirin’s enterprise value”, Kirin said in a statement on Friday (6 February).
However, as part of a review, the company had “decided to enter into an agreement to transfer the business to Gallo”, it said.
The move would allow Kirin to “reallocate its resources toward businesses that could further grow”, it added.
It comes after a report in The Financial Times in October said Kirin was working with UBS to find a buyer for Four Roses.
The Japanese firm was looking to offload Four Roses as part of a pivot away from spirits and towards healthcare, the report said.
Kirin generates sales in excess of £11bn annually and makes everything from lager and spirits to medicines.
E&J Gallo, meanwhile, has been seeking to diversify its business amid a slowdown in wine consumption globally.
The California-based company has a spirits portfolio that includes High Noon RTDs and New Amsterdam vodka. It also distributes for Whyte & Mackay in the US.
In 2024, it made a “strategic investment” in Montana-based brewer Montucky Cold Snacks, as well as acquiring rum brand Ron del Barrilito and Derrumbes mezcal.
Last September, it snapped up California-based wine business Whiny Baby, which is marketed as a more approachable wine for Gen Z drinkers.
No changes were planned to operations production or distribution for Four Roses post-acquisition, a Gallo spokesperson said.
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