Italian spirits group Campari (CPRI.MI) said on Monday it had reached an agreement to buy an initial 70% stake in Wilderness Trail Distillery for $420 million, strengthening its bourbon offer. Under the agreement, Campari has an option to buy the remaining 30% of the Kentucky-based producer of bourbon and rye whiskey in 2031.

The deal implies a current enterprise value of $600 million, which makes it the second biggest acquisition for the Italian group after it bought Grand Marnier in 2016. "By adding the fast-growing super premium Wilderness Trail brand we further expand and premiumise our bourbon offering, priming it to become Campari Group's second major leg after the aperitif portfolio", Chief Executive Bob Kunze-Concewitz said in a statement.