Predators circle Tullibardine distillery

THE management team responsible for rejuvenating the Tullibardine whisky distillery is in discussions with Swiss bankers in a move that may lead to a sale of the Perthshire-based firm.

It is understood financial adviser UBS has received three approaches for the distillery, close to the Blackford home of Highland Spring. Although negotiations are at an early stage, sources say a deal would value the firm at more than £15m. Tullibardine was mothballed for a decade until it was rescued by a four-man consortium of entrepreneurs which bought the operation in 2003.

Backed by Barclays, the quartet acquired Tullibardine for an undisclosed sum from Jim Beam Brands, now Whyte & Mackay, which had decommissioned the facility in 1993 because of overcapacity.

The news comes amid a time of unprecedented interest in the mid-tier of the whisky industry, with speculation surrounding a series of deals for similar sized distilleries.

Last week Scotland on Sunday revealed French drinks giant Pernod Ricard was in final negotiations to sell its Glendronach malt whisky distillery. Whyte & Mackay is understood to be eyeing a possible takeover of Glen Moray, the Elgin-based single malt brand put on the market by Glenmorangie.

The directors of Tullibardine insist there is no 'for sale' sign at the distillery but after receiving speculative approaches the board has decided to consider them seriously.

Founder Michael Beamish, who came up with the plan to buy the distillery in 1999 with Douglas Ross after meeting on a golf course, said: "The company is in profit. We have just posted a fantastic set of results and there is absolutely no reason to sell the business other than somebody paying us a good price.

"We are prepared to entertain offers, so we have spoken with UBS regarding representing us, but we are not actively pursuing a sale and are not going to sell for anything below what we think it is worth."

Beamish and Ross later brought in Glasgow accountants Alastair Russell and Alan Williamson.

Since the takeover they have spent a significant sum in re-fitting the distillery.

Tullibardine is available in 30 global markets and sales are particularly strong in Europe and Taiwan. In the 1970s, the company was taken over by Invergordon and largely rebuilt.