Japanese brewer Kirin Holdings announced it will sell its Kentucky bourbon brand Four Roses to U.S.-based E&J Gallo Winery for up to $775 million. The deal is set to close in the second quarter, enabling Kirin to redirect resources toward businesses that leverage its core strengths. The brand, acquired in 2002, has seen strong growth mainly in the U.S. market.
Japanese brewer Kirin Holdings (2503.T) announced on Friday that it will sell its Kentucky bourbon brand Four Roses to E&J Gallo Winery of the United States for up to $775 million. Kirin acquired the brand in 2002, and the deal is expected to close in the second quarter.
The sale will allow Kirin to "reallocate its resources toward businesses that could further grow by leveraging Kirin’s own organizational capabilities," the company said, without providing further details. Kirin operates a beverage and beer business and owns pharmaceuticals subsidiary Kyowa Kirin (4151.T).
The Financial Times reported in October that Kirin was seeking to sell Four Roses to shift away from Japan's struggling spirits sector and emphasize its healthcare operations.
A spokesperson for Gallo stated that no changes are planned to Four Roses' operations, production, or distribution. According to Kirin, the brand has experienced strong growth since its acquisition, primarily in the U.S. market.
This transaction appears to be part of Kirin's efforts to streamline non-core assets.