Hillhouse buys whisky producer Loch Lomond Group

The size of the transaction was not disclosed, but it reportedly gives Loch Lomond Group an equity valuation of up to $400 million. The seller is UK-focused Exponent Private Equity, which bought the business from the Bulloch family in 2014. The GP claims to have helped boost the share of international revenue from 10% to 70% during its holding period.

The site of the former Loch Lomond distillery dates to 1814 and its current site was established in 1964. The Bullochs, which have a longstanding involvement in Scotch whisky, took ownership in 1987 and launched scaling efforts that continued under Exponent. The company claims to be one of few distillers with a fully integrated production and supply capability. It operates two distilleries in Dunbartonshire, another in Argyll, and a bottling plant in Ayrshire.

Brands include Loch Lomond, Glen Scotia and Littlemill. It also produces a range of blended whiskies, Glen’s Vodka, and Ben Lomond premium Scottish gin. Last year, the company entered into a five-year sponsorship agreement with The Open golf championship.

“Loch Lomond’s rich heritage in Scotch whisky gives the business a distinct advantage as they look to further build on their success across the world, especially in the increasingly discerning Asian spirits market. Hillhouse’s experienced operational team will work closely with Loch Lomond’s management to help it offer a premium consumer experience in international markets through channels like e-commerce and new retail,” said Wei Cao, a partner at Hillhouse, in a statement.

The investment firm closed its latest fund, which makes healthcare, consumer, technology, and services investments globally, but with a focus on Asia, last year with commitments of $10.6 billion. Hillhouse is known for a stage-agnostic strategy that covers start-ups to established listed businesses, but more recently it has shown an appetite for buyouts that require operating capabilities as well as an understanding of technology.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Europe
• Buyouts
• Consumer
• China
• Hillhouse Capital Management