EDMONTON — Liquor Stores Income Fund has signed a deal to buy 19 liquor stores in Alaska from Brown Jug Inc. Terms of the deal were not immediately available.
The fund said Brown Jug is the largest independent chain of liquor stores in Anchorage based on sales.
“We are very pleased with the planned acquisition of the Brown Jug stores as our initial entry into the U.S. market, as well as the addition of our new Canadian stores,” chief executive officer Irving Kipnes said in a statement.
“Management estimates that the 19 Brown Jug stores will add in excess of 12 per cent to current revenue levels in their first full year of operation.”
Liquor Stores Income Fund
Liquor Stores said the new stores will initially contribute approximately $3.5-million (U.S.) annually to earnings before interest, taxes, depreciation and amortization and generate about nine cents per unit of distributable cash.
The deal is expected to close by December.
Liquor Stores Income Fund holds an 81.7 per cent stake in Liquor Stores Limited Partnership, which operates 206 stores.
