Independent Distillers facing options

The Erceg family is understood to be talking to investment banks about selling Independent Distillers.

Speculation about the future of the business has been rife since the death of the founder, Michael Erceg, in a helicopter crash last November, but the family has remained silent.

Talks were at the preliminary stage, a source said, with the family sounding out interest from various banks.

Several options are open to the Erceg family: a trade sale, an initial public offering, a leveraged buy-out or even a management buy-out. No decision on how the family will sell the business or who will sell it for them is expected for six to eight weeks.

Informed observers say a trade sale is the most likely outcome.

Foster's and Lion Nathan are tipped as the most likely buyers as they would be able to pay more than other bidders because of the expected synergies from taking over Independent.

Founded by Michael Erceg in 1987, Independent Distillers popluarised ready-to-drink beverages here. The company also makes beer and spirits.

Independent Distillers was tightly controlled by the publicity-shy Erceg and little is known about its value.

In its rich list last year, the National Business Review put Erceg's personal fortune at $620 million. 

 
Drinks aplenty

* Founded in 1987 by Michael Erceg.
* Estimated to have 65 per cent market share of the country's ready-to-drink market and 8 per cent of the beer market.
* Sugary concoctions such as Purple Goanna, Vodka Cruiser and Woodstock Bourbon and Cola drove company growth.