16 Dec, 2024 - Tranzon Asset Advisors
A group of business partners that included Mark Carter submitted the winning bid for three properties — 101 W. Market St., 103 W. Market St. and 105 W. Market St — as well as all of the assets that belong to the Old Carter Whiskey Co.
Stephen P. Schmidt – Reporter, Louisville Business First Dec 16, 2024 An auction that attracted interest from around the world ended up with one of the sellers being one of the new owners — and it could be the first of several in the bourbon industry. That’s because Mark Carter was able to put together a winning bid of $18.7 million with some business partners to reclaim the Old Carter Whiskey Co. brand and facilities that he started with his now ex-wife, Sherri, in 2018. The final price totaled $20.5 million with the addition of a 10% premium. I recently spoke with Ed Durnil, a regional president of Tranzon Asset Advisors, a national firm that directed the auction out of its offices in Elizabethtown, Kentucky. I initially spoke with him in October when the auction was announced. “It’s been interesting … how many phone calls we’ve had and inquiries we’ve had since this [auction] about other facilities, so I think we’re going to be in the bourbon industry for a while,” Durnil said about possible sellers on the horizon. Given the current climate of the bourbon industry, this could be a narrative worth watching — for brands and distilleries that have taken a financial toll from declining sales over the past two years. A view of the Old Carter Social Club, located at 105 W. Market St. in Downtown Louisville.
Stephen P. Schmidt – Reporter, Louisville Business First
Dec 16, 2024
An auction that attracted interest from around the world ended up with one of the sellers being one of the new owners — and it could be the first of several in the bourbon industry.
That’s because Mark Carter was able to put together a winning bid of $18.7 million with some business partners to reclaim the Old Carter Whiskey Co. brand and facilities that he started with his now ex-wife, Sherri, in 2018. The final price totaled $20.5 million with the addition of a 10% premium.
I recently spoke with Ed Durnil, a regional president of Tranzon Asset Advisors, a national firm that directed the auction out of its offices in Elizabethtown, Kentucky. I initially spoke with him in October when the auction was announced.
“It’s been interesting … how many phone calls we’ve had and inquiries we’ve had since this [auction] about other facilities, so I think we’re going to be in the bourbon industry for a while,” Durnil said about possible sellers on the horizon.
Given the current climate of the bourbon industry, this could be a narrative worth watching — for brands and distilleries that have taken a financial toll from declining sales over the past two years.
A view of the Old Carter Social Club, located at 105 W. Market St. in Downtown Louisville.
“You’re not saying, ‘Oh, we want $30 million and then negotiate down.’ We’re saying, ‘We’re starting at zero and negotiating up,’” he said, “and it has really opened a few eyes in the industry.” The news of the Old Carter auction result was first posted on Friday by bourbon personality Fred Minnick on his news site. In Minnick’s article it is reported that Mark Carter’s group of business partners — all of whom appear to be based in the Washington, D.C. metro area (Carter is based in Louisville) — is highlighted by Bill Thomas, owner of the Jack Rose Dining Saloon in D.C., which claims to have the largest collection of whiskeys in the western hemisphere (according to its site). The group includes Thomas’s longtime business partner, Jared Hyman, as well as the father-son tandem of Zach and Hayden Wright. Minnick’s article refers to the auction as being part of a court-mediated divorce settlement. Interest from all over Tranzon released a comment on Friday that stated there were more than 220 direct inquiries. Bids came in from all over the globe, including England, Canada, India, Italy and Scotland. “The winning bidder acquired a bonded whiskey distillery, licenses, real estate and substantial inventory of barreled and packaged whiskey. The sale also included the purchase of additional, substantial real estate holdings in Louisville’s Whiskey Row neighborhood,” the statement read in part about the acquisition of the Old Carter brand and the properties at 101 W. Market St., 103 W. Market St. and 105 W. Market St.
“You’re not saying, ‘Oh, we want $30 million and then negotiate down.’ We’re saying, ‘We’re starting at zero and negotiating up,’” he said, “and it has really opened a few eyes in the industry.”
The news of the Old Carter auction result was first posted on Friday by bourbon personality Fred Minnick on his news site.
In Minnick’s article it is reported that Mark Carter’s group of business partners — all of whom appear to be based in the Washington, D.C. metro area (Carter is based in Louisville) — is highlighted by Bill Thomas, owner of the Jack Rose Dining Saloon in D.C., which claims to have the largest collection of whiskeys in the western hemisphere (according to its site).
The group includes Thomas’s longtime business partner, Jared Hyman, as well as the father-son tandem of Zach and Hayden Wright.
Minnick’s article refers to the auction as being part of a court-mediated divorce settlement.
Interest from all over
Tranzon released a comment on Friday that stated there were more than 220 direct inquiries. Bids came in from all over the globe, including England, Canada, India, Italy and Scotland.
“The winning bidder acquired a bonded whiskey distillery, licenses, real estate and substantial inventory of barreled and packaged whiskey. The sale also included the purchase of additional, substantial real estate holdings in Louisville’s Whiskey Row neighborhood,” the statement read in part about the acquisition of the Old Carter brand and the properties at 101 W. Market St., 103 W. Market St. and 105 W. Market St.
Durnil said that 57 bids were submitted in total. The initial thought for an auction like this is that the winning bid would be somewhere in the range of $10 million to $15 million, but the two finalists — Carter’s group and a party with no Kentucky connections — had a bidding war on Thursday that ratcheted up the final price. “The pricing definitely surprised us. … I think we got a significant premium for all of the assets,” Durnil said. Durnil and his team were equally astounded by how many inquiries they had. “I was told by industry folks that if we had 10 to 15 groups look at this, we’d be doing well, so to have over 200 non-disclosures signed … was mind boggling.” Durnil attributed the surge in interest to two main factors 1.) The strength of the ultra-premium brand, which goes for around $200 a bottle (and was doing well financially at the time of the auction) and 2.) The uniqueness of having bidders being able to put their own pricing on the assets. “It’s been interesting … how many phone calls we’ve had and inquiries we’ve had since this [auction] about other facilities, so I think we’re going to be in the bourbon industry for a while." — Ed Durnil, Tranzon Asset Advisors The three combined assets feature a bonded/licensed distillery with a pot still, a blending facility, an ancillary bottling company and an on-site tasting room with a members-only club. In addition, 101 W. Market St. is the home of the Louisville location of Justins’ House of Bourbon (there is also one in Lexington). Mark and Sherri Carter purchased all three properties from Melvin and Sheila Davis of Louisville for $1.05 million in 2019. Having experienced much success in the wine industry in Napa Valley, the Carters originally got into the bourbon space by helping restore the Kentucky Owl brand in 2011 in partnership with Dixon Dedman. Kentucky Owl was acquired by the Stoli Group, who recently filed for Chapter 11 bankruptcy both for the brand and for the U.S. operations of the entire company. Attempts have been made to reach out to Mark Carter for a comment. This story may be updated.
Durnil said that 57 bids were submitted in total. The initial thought for an auction like this is that the winning bid would be somewhere in the range of $10 million to $15 million, but the two finalists — Carter’s group and a party with no Kentucky connections — had a bidding war on Thursday that ratcheted up the final price.
“The pricing definitely surprised us. … I think we got a significant premium for all of the assets,” Durnil said.
Durnil and his team were equally astounded by how many inquiries they had.
“I was told by industry folks that if we had 10 to 15 groups look at this, we’d be doing well, so to have over 200 non-disclosures signed … was mind boggling.”
Durnil attributed the surge in interest to two main factors 1.) The strength of the ultra-premium brand, which goes for around $200 a bottle (and was doing well financially at the time of the auction) and 2.) The uniqueness of having bidders being able to put their own pricing on the assets.
“It’s been interesting … how many phone calls we’ve had and inquiries we’ve had since this [auction] about other facilities, so I think we’re going to be in the bourbon industry for a while." — Ed Durnil, Tranzon Asset Advisors
The three combined assets feature a bonded/licensed distillery with a pot still, a blending facility, an ancillary bottling company and an on-site tasting room with a members-only club.
In addition, 101 W. Market St. is the home of the Louisville location of Justins’ House of Bourbon (there is also one in Lexington).
Mark and Sherri Carter purchased all three properties from Melvin and Sheila Davis of Louisville for $1.05 million in 2019.
Having experienced much success in the wine industry in Napa Valley, the Carters originally got into the bourbon space by helping restore the Kentucky Owl brand in 2011 in partnership with Dixon Dedman. Kentucky Owl was acquired by the Stoli Group, who recently filed for Chapter 11 bankruptcy both for the brand and for the U.S. operations of the entire company.
Attempts have been made to reach out to Mark Carter for a comment.
This story may be updated.