(KAIR)--A subsidiary of Atchison-based MGP Ingredients has “reached a definitive agreement” to purchase Penelope Bourbon LLC.

According to a release from MGP, the Luxco, Inc. subsidiary will acquire 100-percent of the equity of Penelope Bourbon and its related assets. Penelope Bourbon, the release explains, was founded in 2018 and “is a family and founder-owned and operated American Whiskey company with a diverse portfolio of high-quality whiskeys in the premium-plus price tiers.”

David Colo, President and CEO of MGP, in the release, says the company is “excited to welcome Penelope as part of [MGP-] expanding premium-plus brand portfolio,” adding that the company is “enthusiastic about this acquisition and its ability to further [MGP's ] participation in the growing American Whiskey category while delivering meaningful long-term growth.”

According to the release, “the acquisition includes all intellectual property and inventory of bottled product, as well as Penelope's aging whiskey inventory on a debt-and-cash-free basis,” with the release noting that “the upfront consideration is $105.0 million in cash to be paid at closing, with further potential earn-out contingent consideration of up to a maximum cash payout of $110.8 million measured through December 31, 2025 if certain performance conditions are met, reflecting the brand- current growth potential.”

According to the Atchison-based company, “the acquisition is expected to be financed using MGP's existing revolving credit facility and cash on hand.”'