USL to buy JP Impex Incorp's Karnataka-based assets

Will pay Rs 11.5 cr for the deal; purchase will boost its IMFL capacity in the state

Liquor firm United Spirits has inked a pact to buy JP Impex Incorp's Karnataka-based assets -- including plant and machinery -- for Rs 11.5 crore, enhancing its liquor manufacturing capacity in the state.

The company has entered into an asset purchase agreement with JP Impex lncorp, a partnership firm, for purchasing the building, plant and machinery, licences, transfer of lease hold rights on the land, all relating to the factory, United Spirits Ltd (USL) said in a filing to the BSE.

"The purchase of the above assets would facilitate an increase in the company's licensed Indian Made Foreign Liquor (IMFL) production capacity in Karnataka, which the company proposes to use for Tetra Pak production and availing logistical advantage," it added. The company, which is now controlled by UK-based Diageo, sells various brands including Signature, Bagpiper, Antiquity and Royal Challenge in the country. The USL scrip closed at Rs 2,333.10, up 1.67 per cent, on the BSE.