SC&H Capital, a leading investment banking and advisory firm, is pleased to announce that its client, Black Button Distilling (“Black Button” or the “Company”), has been acquired by Blackstar Company (“Blackstar”), a newly formed company helmed by spirits industry veterans Kris Comstock and Ray Franklin.
Black Button is a small batch craft distillery in upstate New York that built a strong brand presence and reputation over its 13 years in business and was, at one point, the largest bourbon distillery in the state. In addition to its manufacturing capabilities, the Company also ran a taproom and bulk spirits brokerage operation in Rochester. Sales grew dramatically, topping $31 million, which drew the attention of private equity. With new financial backing and plans to launch a nationwide marketing campaign, the Company extended several million dollars to move into and retrofit a new facility. Cost overruns and delays from the move, coupled with a distinct downturn in the alcohol market, crippled the Company’s cash flow and SC&H Capital was retained to run a formal sale process.
SC&H quickly got over 40 interested parties under NDAs and conducting diligence, which led to three bids for the business. Over several months of further diligence and continued negotiations, an offer was selected that relieved the owner of his personal guarantees, provided substantial recovery above any liquidation estimates for the secured creditor, and offered continued employment opportunities for the staff.
