Brown-Forman rejects Sazerac takeover bid, reaffirms long-term growth strategy

USA – Brown-Forman, the maker of Jack Daniel’s whiskey, has rejected an unsolicited takeover proposal from privately held spirits company Sazerac, with the company’s board concluding that the latest offer was “not actionable” and reaffirming confidence in its long-term growth strategy. 

The financial terms of the renewed proposal were not disclosed. However, Sazerac, whose portfolio includes Southern Comfort and Svedka vodka, reportedly offered approximately US$15 billion for Brown-Forman in April.  

According to earlier reports by The Wall Street Journal, the proposal valued the company at about US$32 per share, but it was rejected in May. 

Brown-Forman said a group of Brown family members holding the majority of the company’s Class A shares opposed the latest proposal, maintaining that the business is well-positioned to deliver long-term value for all shareholders. 

The family added that Sazerac’s revised offer “does not align” with that long-term vision. 

Commenting on the decision, Brown-Forman Chairman Marshall B. Farrer said: “Brown-Forman’s board and leadership team are confident that the company will continue to deliver long-term growth and shareholder value. The company remains focused on executing its strategic plan, including expanding its geographic footprint, building brands that resonate with consumers, and enhancing operational efficiency, while continuing to explore additional opportunities to create sustained value for all shareholders.” 

Sazerac’s latest approach follows unsuccessful merger discussions between Brown-Forman and Pernod Ricard earlier this year. The two spirits companies disclosed in March that they had explored a potential transaction described as a partnership akin to a merger of equals, but the talks ended in April after they failed to reach mutually acceptable terms. 

The takeover interest also comes during a period of leadership transition at Brown-Forman. Earlier this month, the company announced that President and Chief Executive Officer Lawson Whiting intends to retire. Following the appointment of a successor, Whiting will remain in an advisory role for a period of time, the company said. 

Despite the takeover interest, Brown-Forman reaffirmed its fiscal 2027 outlook, forecasting net sales to remain approximately flat while organic operating income is expected to decline by 3% to 5%. The company said it expects the operating environment for fiscal 2027 [to] remain challenging. 

For the fiscal year ended April 30, Brown-Forman reported net sales of US$3.9 billion, representing a 1% decline from the previous year. 

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