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£71 million Recommended Cash Offer of The Lakes by Nyetimber

Singer Capital Markets is delighted to have acted as Financial Adviser to The Lakes Distillery Company plc on its Recommended Cash Offer by Nyetimber Wines and Spirits Group Limited for £71 million, achieving a transaction multiple of 12.2x FY23 Net Sales.

Under the terms of the Acquisition, each The Lakes Shareholder is entitled to receive 116 pence in cash for each The Lakes Share. Accordingly, the Acquisition valued The Lakes’ existing issued and to be issued share capital at approximately £46.1 million. This implied an Enterprise Value of £71.0 million, based on The Lakes Directors’ expectation for The Lakes’ net financial debt as at 31 May 2024, which comprised £25.8 million of financial debt and associated make whole payments, less £0.9 million of cash and cash equivalents.

Nyetimber made an offer for The Lakes as it believed that there was a sizeable opportunity for The Lakes to grow its market share within the UK Single Malt Whisky market, as well as to continue to expand its presence internationally. Nyetimber believes that it is the right long-term partner to support The Lakes’ management team to deliver on its ambitions to become a leading international spirits brand.

James Pennefather, Chief Executive Officer of The Lakes, commented:

The Lakes Board is enthusiastic about its ambitious future plans and the offer by Nyetimber offers the prospect of an owner with the same shared strategic vision and crucially, certainty of funding. By joining the Nyetimber family of companies, The Lakes will benefit, in particular in terms of quality of production, brand marketing and routes to market.

By joining the Nyetimber family of companies, The Lakes will benefit, in particular 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 £71.0 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.

I look forward to working with Eric and the Nyetimber team as we continue our journey to build a luxury international spirits brand.”

About The Lakes Distillery Company plc

The Lakes Distillery, established in 2011 and nestled on the north shore of Bassenthwaite Lake in majestic surroundings, near Keswick, inspiring an artistic ethos and a range of fine whiskies, gins and vodka.

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