- Lark Distilling Co. (LRK) will take over the Pontville Distillery and Estate by acquiring its owner Kernke Family Shene Estate for $40 million
- The whiskey producer entered a trading halt on Monday morning before announcing the acquisition as well as a $53 million capital raise
- LRK will hand over $38.5 million in cash and $1.5 million in shares to Kernke in order to acquire the 161.87 hectares of land in Tasmania, cellar door and distillery
- The business also plans to build a new new 1 million litre distillery on the Pontville estate, with the facility expected to be up and running in 2023
- Shares in Lark Distilling Co. remain halted from trade, last trading at $5.06 each
Lark Distilling Co. (LRK) will take over the Pontville Distillery and Estate by acquiring its owner Kernke Family Shene Estate for $40 million.
The whiskey producer entered a trading halt on Monday morning before announcing the acquisition as well as a $53 million capital raise.
LRK explained it’ll raise $46.5 million via and institutional placement and $6.4 million through a conditional placement – with 10.6 million new shares to be issued at $5 each.
The capital raised will help cover the consideration for Pontville, which consists of $38.5 million in cash and $1.5 million in shares.
Once the buy is complete, Lark will walk away with 40 acres of additional land in Tasmania, including a cellar door and a 130,000 litre distillery.
Pontville will be Lark’s third working distillery in Tasmania, alongside its Cambridge and Bothwell sites, and will take its inhouse production to 576,000 litres of Lark whisky per year.
Additionally, the ASX-lister plans to use today’ fundraise to bankroll the construction of a new 1 million litre distillery on the Pontville site.
The site is expected to be commissioned in 2023 and Managing Director Geoff Bainbridge said the acquisition positioned Lark as a global leader
“The acquisition of the Pontville Distillery and Estate clearly supports our vision of becoming a global icon in single malt whisky,” he said.
“These assets provide significant whisky inventories on value accretive terms and re-balance the maturity profile of our overall whisky under maturation.
“Critically, the age profile and quality of the whisky under maturation being acquired will enable The House of Lark to commence an export programme from FY23 which is approximately 12 months ahead of previously published plans.”
Shares in Lark Distilling Co. remain halted from trade, last trading at $5.06 each on Friday, October 15.