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BRIEF-MGP Ingredients to sell stake in ICP joint venture
June 27, 2017 / 12:19 PM / in 6 months

BRIEF-MGP Ingredients to sell stake in ICP joint venture

June 27 (Reuters) - MGP Ingredients Inc:

* MGP reaches agreement to sell stake in ICP joint venture

* MGP Ingredients Inc - total proceeds of $76 million

* Says ‍purchase price is subject to customary pre- and post-closing adjustments​

* MGP Ingredients inc - expects that its board of directors will declare a special dividend of approximately $0.85 per share of common stock outstanding

* MGP Ingredients Inc - no change at this time to company’s previously-issued guidance regarding revenue or operating income expectations

* MGP Ingredients - total will be paid in a combination of $30 million in cash and through issuance of secured promissory notes

* Says ‍transaction will reduce MGP’s net income by eliminating equity method investment earnings after date of closing​

* MGP Ingredients - dividend will primarily be funded from initial cash proceeds from sale and cash from dividend distribution from ICP of $6.6 million approved on June 26, 2017

* MGP Ingredients - transactions contemplated by merger agreement would result in a gain on sale of equity method investment, net of tax, of about $8.0 million Source text for Eikon: Further company coverage:

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