Lion Capital, the London-based private equity firm, is to acquire a majority stake in the Russian Alcohol Group, the largest producer of vodka and ready-to-drink alcoholic beverages in Russia, for US$156.5m.
The company was sold by domestic group Industrial Investors. The deal will also include Goldman Sachs and the Central European Distribution Corporation as investors alongside Lion Capital in the Moscow-headquartered company. As well as producing top-selling premium vodka, Russian Alcohol also boasts one of the largest portfolios of long drink products in the country.
It employs approximately 3,500 employees across five production facilities. In its current financial year, the company expects to generate net sales of over US$500m.
Javier Ferrán, Partner of Lion Capital said: “We believe there is a compelling opportunity to capitalise on the Russian consumer trend towards premium spirits products and to further accelerate the company’s strong financial performance.”