Global spirits company Beam is to buy whiskey producer Cooley Distillery in a €73 million deal.

The independent distillery owns and produces the Kilbeggan, Connemara, Tyrconnell and Greenore brands. It was founded by John Teeling, who also heads up a number of natural resources companies.

The acquisition will mark the maker of Jim Beam bourbon's entrance into the expanding Irish whiskey market, which grew by an estimated 11.5 per cent last year.

"Cooley is one of only three sources for Irish whiskey, and the only independent player, so this transaction is a unique and compelling high-return opportunity to enter one of the industry's highest growth categories," said Matt Shattock, president and chief executive of Beam.

"We see the opportunity to leverage our combination of scale with agility to further build consumer demand for Cooley's award-winning brands, and to expand distribution off a relatively small base in key export markets for Irish whiskey across North America and Europe."

The distillery is being bought for $95 million (€73 million) on a debt-free basis. Share holders will be offered $8.25 in cash for each outstanding share. The offer must gets at least 80 per cent approval from shareholders if it is to go ahead, but more than 75 per cent have already agreed to the deal.

Beam, which also makes Teacher's scotch in addition to a number of brands of tequila, rum and gin, said it expected the transaction to close in the first quarter of 2012, and the acquisition will be earnings neutral next year.