Japanese brewer Kirin Holdings said on Friday it will sell its Kentucky bourbon brand Four Roses to E&J Gallo Winery of the U.S. for up to $775 million (£570m).
Kirin, which bought Four Roses in 2002, said it was looking to complete the deal 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," Kirin said, without elaborating.
The Financial Times reported in October that Kirin was looking to sell Four Roses to pivot from the struggling spirits sector in Japan and focus on its healthcare business.
Kirin owns a beverage and beer business and has a pharmaceuticals subsidiary called Kyowa Kirin.
A Gallo spokesperson said no changes were planned to Four Roses' operations, production or distribution. Kirin said the brand has grown strongly since its acquisition, primarily in the U.S. market.
Gallo's wine brands in the UK include Barefoot Wine, Gallo Family Vineyards, Apothic Wines, Dark Horse Wine, and Carnivor.
(Reuters)