Allied-Lyons Takes Over Hiram Walker

British food and drink company Allied-Lyons PLC said Tuesday that it would expand its 51% ownership and take full control of one of the best-known names in distilling, Canada’s Hiram Walker-Gooderham & Worts Ltd., in a cash and share deal worth $1.01 billion.

Allied-Lyons is buying the interest from Toronto-based GW Utilities Ltd., a private development firm controlled by Olympia & York Developments Ltd.

GW Utilities will acquire a 10% stake in Allied-Lyons in the deal.

Hiram Walker is one of the largest distillers in the world, producing a wide range of Canadian and Scotch whiskies. It markets more than 100 of its own brands, and sells other brands in North America produced by non-affiliated companies. Its brands include Canadian Club Whiskey and Ballantine’s Scotch.

Shareholders Trading Up

Allied-Lyons said in a statement that it was the right time to take full control of Hiram Walker. “Shareholders will receive all the advantages that are flowing from the successful operations of Hiram Walker,” it said.

GW Utilities Chairman Marshall Cohen said the transaction will benefit his firm’s shareholders by trading a minority interest in Hiram Walker for an interest in Allied-Lyons, a much larger and diversified business.

GW Utilities, a diversified company 88% owned by Olympia & York, holds the assets of Gulf Canada Corp., formerly owned by Gulf Oil Co. before it was acquired by Chevron Corp. Olympia & York is owned by the Reichmann family of Toronto.

GW Utilities, in turn, holds an 83% stake in Consumer Gas Co., a big Canadian utility, and 41% of Interprovincial Pipe Line, another major Canadian company.

The deal includes a $131.4-million cash payment. The rest of the purchase price includes the exchange of shares, putting a price tag of $1.015 billion on the entire transaction.

The deal is subject to the approval of Allied-Lyons shareholders.