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Sazerac Bids $15 Billion for Jack Daniel's Maker Brown-Forman ...
The privately held company’s $32-a-share offer would complicate Brown-Forman’s talks with Pernod Ricard and could reshape spirits industry consolidation.
- On Wednesday, New Orleans-based Sazerac offered to acquire Brown-Forman for $15 billion, or about $32 per share, complicating ongoing merger negotiations between the Kentucky-based distiller and France-based Pernod Ricard.
- Supply-Chain disruptions and softening consumer demand prompted the move, as consolidation offers alcohol companies greater scale to mitigate industry turbulence while Brown-Forman remains in discussions with Pernod Ricard.
- Brown-Forman shares closed at $29.57 yesterday, trailing Sazerac's offer, as investors weigh hurdles including the Brown family's controlling stake; analysts suggest Pernod remains a better fit due to global reach.
- Sazerac's bid leverages long-standing ties within the Louisville bourbon industry, while industry advisers note a combined entity could gain significant negotiating leverage with major United States distributors.
- Management at Brown-Forman previously stated it "regularly explores and evaluates strategic opportunities" but declined further comment, while both companies have remained silent regarding speculation in recent days.
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Sazerac bids US$15bil for Jack Daniel's maker Brown-Forman, source says
NEW YORK: US spirits group Sazerac has offered to buy Brown-Forman for about US$15 billion, a source familiar with the matter said on Wednesday, complicating Pernod Ricard's attempt to merge with the Jack Daniel's maker.
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Total News Sources23
Leaning Left1Leaning Right6Center8Last UpdatedBias Distribution53% Center
Bias Distribution
- 53% of the sources are Center
53% Center
C 53%
R 40%
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