Kliro Capital Partners Acquires Intercontinental Brands in the United Kingdom

Kliro Capital Partners, a family office based in Haslemere, United Kingdom, acquired Intercontinental Brands, a spirits brand owner, manufacturer, and distributor based in North Yorkshire, United Kingdom, on July 17, 2023. This acquisition is the first for Kliro Capital Partners.

Transaction Summary

The Facts of the Acquisition

  • Target: Intercontinental Brands, formed in 1990, is a manufacturer and distributor of alcoholic beverages. It is based in North Yorkshire, United Kingdom, with a production unit 50 miles away in Middlesbrough. Brands include Cactus Jack, Veroni Amaretto, V-Kat, Hawksbill Rum, Rozél Vodka, and Bella Apertini.
  • Acquirer: Kliro Capital Partners, formed in 2020, is a family office based in Haslemere, United Kingdom. The management team has experience in the beverages industry, and the company’s mission is to invest in the UK consumer goods sector.

Our Take on the Acquisition

This is the first investment by Kliro Capital Partners (acquirer), and it has acquired 100% of the company. The management team has 12 years of experience in the international drinks industry. The financial performance of Intercontinental Brands (target) has been improving over time. Kliro has stated that it sees growth potential in the beverages sector and is willing to invest additional funds into the target to fund future growth.

The Transaction

Date:July 17, 2023
Purpose: To invest in the alcoholic beverages sector.
Acquirer’s Statement:Warren Scott, founder of Kliro Capital Partners – “We are delighted to have completed the acquisition of ICB [Intercontinental Brands]. It is a good business with a strong leadership team and we believe that there is significant potential for growth both in the UK and beyond. We are committed to working closely with the ICB team to maximise the company’s potential through driving the pursuit of excellence in the drinks industry. This is the first step in our strategy to create a leading group supplying a diverse range of drinks products to UK retailers and 3rd party brand owners.”

Target/Seller: Intercontinental Brands

Company Information

Target:Intercontinental Brands
Industry: Alcohol Manufacture and Distribution
Employees:61 (Self-published on LinkedIn)
Locations:Head Office: 4 Sceptre House, Hornbeam Business Park, Harrogate, North Yorkshire, United Kingdom
Production Division: Intercontinental Brands, Murdock Road, East Middlesbrough Industrial Estate, Middlesbrough, United Kingdom

Product Information 

Services:Bottling – Process of putting drinks in bottles for sale to the public
Distillation – Process of separating the components from a liquid mixture by using selective boiling and condensation
Products:More than 500 SKUs, including:
Amaretto – A sweet liqueur made from apricot kernels, almonds, and peach. Generally contains 21-28% ABV (alcohol by volume)
Gin – A distilled alcoholic drink with juniper berries and other botanical ingredients
Rum – Liquor made by fermenting and then distilling sugarcane molasses.
Schnapps – A type of dry spirit with high alcoholic content that may have herbal or flavored infusions
Vodka – Clear, distilled spirit made from fermented cereal grains and potatoes.
Market Reach:United Kingdom

Financial Information 

Revenue:GBP £40.65 million (USD $54.88 million) Source: Companies House, the UK equivalent to the U.S. SEC
Revenue per Employee:GBP £666,394 (USD $899,672) – i.e., GBP £40.65 million / 61 employees = GBP £666,394 – estimated based on the self-published number of employees and the revenue from Companies House.

Did You Know?

The average British household spends GBP £16.70 a week on alcoholic drinks, according to NimbleFins, a research and personal finance site. That’s roughly 3% of the average household budget. In the United States, the average spend is roughly USD $11, or 0.8% of the average household budget, according to the U.S. Bureau of Labor Statistics.

Target/Seller Overview: Intercontinental Brands

Founded in 1990, Intercontinental Brands has evolved into a fast-paced and dynamic company. The business was born out of developing products aimed at the student market. It has moved with the times to expand into a wide range of products, keeping pace with market trends and a vision for the future drinks landscape. The company focuses on producing innovative and outstanding quality beverages for the worldwide market.

A selection of Intercontinental Brands’ SKUs.
Intercontinental Brands operates a production factory in Middlesbrough, United Kingdom.

Buyer/Acquirer: Kliro Capital Partners

Company Information

Buyer:Kliro Capital Partners
Industry: Investment Management
Employees:5 (Source: company website)
Locations:Head Office: Stable Cottage, Furnace Place, Killinghurst Lane, Haslemere, United Kingdom

Investment Areas

Sector:Consumer Goods
Target Type:Private companies
Target Enterprise Value:GBP £10-50 million (USD $13-65 million)
Investment Strategy:Takes a controlling stake and a helpful, collaborative approach
Market Reach: United Kingdom

Financial Information 

Revenue: N/A

Buyer/Acquirer Overview: Kliro Capital Partners

Kliro Capital Partners is a family office with a strong management board with extensive experience in sectors including the drinks industry. It is owned and led by Warren Scott, a former investment banker. Kliro invests in target companies valued between GBP £10-5o million (USD $13-65 million) and is mainly interested in the UK consumer sector.

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