MGP, based in Atchison, Kansas produces a range of spirits including bourbon, gin and vodka.

“Luxco presents a unique opportunity to take a material step towards realising our long-term strategy,” said David Colo, president and CEO of MGP Ingredients. “It significantly expands our product line in the higher-value branded-spirits sector and increases our sales and distribution capabilities across all 50 states.

“We have enormous respect for the platform Luxco has built, and we’re excited to add its portfolio of fast-growing premium distilled spirits brands together with strong, cash-flow generating legacy brands.”

Missouri-based Luxco produces American whisky brands including Rebel Yell, Yellowstone and Ezra Brookes mainly from its Lux Row Distillers site in Bardstown Kentucky which opened in early 2018.

The company also has a distillery near Arandas in Jalisco which produces El Mayor and Exotico tequilas.

Donn Lux, chairman and CEO of Luxco, added: “There is a clear strategic fit between Luxco and MGP and I believe this transaction represents a great outcome for Luxco employees and customers.

“I’m excited to continue my involvement with this blend of two well-positioned companies whose strong records of performance and commitment to excellence provide an attractive platform for continued growth.”