Australian Whisky Holdings (AWH) has reached an agreement with Nant Group to buy the Nant Distillery business and the Nant Estate property.

The $3m deal will be paid in cash.

As well as secure requsite approvals from its board and shareholders, AWH will also assume Nant's debts and liabilities of approximately $5.5m.

"AWH proposes to accelerate growth in the craft whisky industry ahead of competitors and take a leadership position in the industry."

The company will acquire all the whisky assets of Nant except the bars and hotel in Hobart, Melbourne and Brisbane, reported Themercury.com.au.

AWH chairman Terry Cuthbertson was quoted by theshout.com.au as saying: “The acquisition of the Nant Distillery business and the historic Nant Estate is a further milestone towards AWH’s vision of having ownership interests in a number of premium single malt whisky producers and distributors in Australia, focusing in particular in Tasmania.

AWH proposes to accelerate growth in the craft whisky industry ahead of competitors and take a leadership position in the industry.

"In doing so, AWH intends to lead the structuring and development of, and be instrumental in, defining the final shape of the craft whisky industry in Australia and maintaining Tasmania’s leadership position in this industry.

We believe that by doing this, we will provide the current craft producers a platform to increase volume, and we will give each brand an ability to increase profits and distribution into the higher margin markets in Asia.”

The Nant Group includes Nant Estate, Nant Distilling Company, Nant Distillery, Nant Barrel Holdings, Nant Administration, and the Nant Atrium Restaurant.

AWH also has a 31.66% stake in the Lark Distillery and a 12% stake in Redlands Estate.