MUMBAI: Vijay Mallya-promoted United Spirits has acquired Scottish whisky company Whyte & Mackay for 595 million pounds (Rs 4,819 crore) in the largest such deal by an Indian company in the liquor space.

The buyout of the Glasgow-based manufacturer of brands such as Whyte & Mackay scotch, Dalmore, Glayva, Isle of Jura and Cluny and Claymore would make United Spirits' promoter UB Group the world's second-largest liquor maker. Announcing the deal, Mallya said it will help in making available Scotch whiskey in India, China and the Gulf.

"We have bought the company at the right time because scotch whiskey prices are going up day-by-day and the industry is also looking up in India," he told reporters here through a video conference from Glasgow. Post-acquisition, United Spirits will have a consolidated sales of 75 million cases per annum. Whyte & Mackay sold nine million cases in the last 12 months, while United Spirits sold 66 million cases for the year ended March 31.

With the acquisition of 100 per cent equity of the scotch whiskey company, United Spirits, which has been looking at New York and Singapore among the global stock exchanges for listing, may now look at London, Mallya said. On funding the acquisition, he said it will be financed through ICICI Bank (USD 325 million), and Citibank (USD 310 million) and through sale of United Spirits' treasury stocks.

"The annual operating income of Whyte & Mackay is now approximately 50 million pounds and expected to grow at 20 per cent per annum for the foreseeable future while the revenue line has grown 30 per cent in the current year," a statement issued by United Spirits said. The earnings of Whyte & Mackay would cover the cost of acquisition in the near future, Mallya said.

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