Diageo-controlled liquor maker, United Spirits Limited (USL), on Thursday (June 19) announced that it will acquire full ownership of NAO Spirits & Beverages Private Limited, maker of premium Indian craft gin brands, Greater Than and Hapusa, at an enterprise value of ₹130 crore (approximately $15.2 million).

USL’s board has approved the acquisition of 37,683 equity shares from NAO’s existing shareholders in two tranches for a total of ₹53.8 crore, along with a fresh subscription to 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS) for ₹56 crore.

These transactions, expected to close by June 27, 2025, will raise USL’s stake from 30% to 97.07%, making NAO a subsidiary. The remaining 3% will be acquired by June 2026, completing the full takeover.

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NAO Spirits, with a net turnover of ₹34.83 crore in FY24 and a net worth of ₹18.21 crore, operates in the craft alcoholic beverages segment and sells its products both domestically and internationally.

The acquisition will be funded through a combination of upfront and deferred cash consideration. USL has also approved additional investments of up to ₹20 crore to support NAO’s working capital and operational expansion.

While the fresh equity and CCPS subscription qualify as a related party transaction due to NAO being an associate company, the share purchase from existing shareholders does not. The deal is subject to standard closing conditions under the share purchase agreement.

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Praveen Someshwar, MD and CEO, Diageo India, said, “Ventures, Diageo India’s investment arm, is dedicated to strengthening our portfolio by investing in disruptive alco-bev startups. This allows us to offer consumers a wider array of products that resonate with evolving preferences. The acquisition of NAO Spirits, a promising portfolio company within our Ventures arm, represents a pivotal step in exploring future growth opportunities in Indian craft spirits.”

Shares of United Spirits Ltd ended at ₹1,460.95, down by ₹1.25, or 0.085%, on the BSE.