Shawbrook backs McConnell’s Irish Whisky with £22.5m ABL deal

Shawbrook has provided a £22.5 million asset based lending (ABL) facility to McConnell’s Irish Whisky to support the brand’s international expansion and long-term growth plans.

The revolving ABL facility is structured around McConnell’s maturing Irish whisky inventory and replaces the company’s previous funding arrangements. The deal is designed to provide additional headroom to support stock maturation, export growth and the early-stage commercialisation of bulk whisky.

Originally launched in 1776, McConnell’s played a major role in Belfast’s historic whisky trade, with the city once exporting 75% of all Irish whisky worldwide at the turn of the 20th century.

Following its relaunch in 2020, the brand has expanded rapidly and is now exported to more than 45 countries. The business has also won more than 55 international whisky awards and last year opened a new brand home and distillery in Belfast, transforming a former Victorian prison into a modern whisky production site capable of producing 500,000 litres of pure alcohol annually.

The company’s current portfolio includes four premium and ultra-premium whisky expressions, with further launches planned.

John Kelly, CEO of McConnell’s Irish Whisky,said the funding would support the next stage of the company’s growth strategy.

“Reviving a brand of this scale requires patient capital and a funding partner who understands both our growth ambitions and the dynamics of maturing whisky inventory,” he said.

“Shawbrook demonstrated a genuine appetite to understand our vision from the outset. This facility gives us the flexibility to continue investing in our stocks, our international footprint and our visitor experience.

“The facility will also provide us with the resources required to continue on our mission to put Belfast back on the Whisky Map where it belongs.”

“We engaged early with management and took time to understand the evolution of the business and the long-term value embedded within its maturing inventory,” he said.

“It has been a pleasure to work alongside John and his passionate team in delivering this facility that will see them continue to revive the city’s reputation in the world of Irish Whisky.”

“Key to our delivery was gaining a deep understanding of their current lifecycle stage and tailoring our offering to their future growth and aspirations.”

Rothschild & Co advised McConnell’s on the transaction.