English wine producer Nyetimber Wines & Spirits Group has offered to purchase The Lakes Distillery, in a deal worth £71 million.

The acquisition values The Lakes’ shares at around £46.1 million, and taking debt into consideration, the enterprise value of the deal is £71 million.

Nyetimber flagged the distiller’s English single malt whisky, among its other premium spirits.

The Lakes CEO James Pennefather said: “The Lakes Board is enthusiastic about its ambitious new ten year plan to achieve a 1% share of the global luxury dark spirits market by 2030. This plan entails an additional funding requirement of £10 million over the next three years to provide the necessary growth capital to increase production capacity, to further invest in laying down maturing spirit stocks and to grow the brand’s footprint in four international markets. The offer by Nyetimber offers the prospect of an owner with the same shared strategic vision and crucially, certainty of funding.”

Pennefather said that by joining the Nyetimber family of companies, The Lakes will benefit in terms of quality of production, brand marketing and routes to market.

“The Lakes directors are confident that this will confer significant benefits to The Lakes’ long-term prospects both as a brand and as a company and the Nyetimber offer, which values The Lakes at an enterprise value of approximately £71 million, equivalent to a multiple of 12.2 times net revenues for FY23, represents not only the best way to ensure that The Lakes remains fully funded but also provides fair value for existing shareholders at this stage in The Lakes’ growth journey.”

Eric Heerema, CEO of Nyetimber, added: “We believe that this potential acquisition represents an opportunity for us to expand our capabilities, drive exciting new growth and support The Lakes in delivering on its ambition to be a globally recognised spirits brand. Not only do we have an inherent understanding and strong relationships with the world’s leading luxury restaurants, bars and retailers, but we also have a shared strategic vision.”