Brown-Forman rejects US$15B Sazerac takeover bid

USA – Brown-Forman, the US-based owner of Jack Daniel’s, has reportedly rejected a $15 billion takeover offer from fellow American spirits company Sazerac, according to sources cited by the The Wall Street Journal. 

The proposed bid, valued at $32 per share and structured as an all-cash offer, was declined on Monday after advisers informed Sazerac that Brown-Forman would not proceed, the report said. 

The decision comes less than two weeks after separate merger discussions between Brown-Forman and French spirits group Pernod Ricard collapsed. The two firms had been exploring a “merger of equals” before talks ended without agreement due to differences over control and structure. 

The Wall Street Journal reported that Sazerac had earlier approached Brown-Forman, which owns whiskey brands including Jack Daniel’s, Woodford Reserve and Old Forester. Sazerac, meanwhile, produces Buffalo Trace, Blanton’s, Pappy Van Winkle, Fireball and Southern Comfort. 

If completed, the deal would have combined two of Louisville’s most influential whiskey producers under one group, significantly reshaping the US bourbon industry. 

Sazerac’s approach followed closely after the failed Pernod Ricard discussions. At the time, both companies said their negotiations had ended after they were unable to agree on final terms for a potential combination. 

Industry sources said the Brown family, which retains control of Brown-Forman, had shown a preference for the Pernod Ricard proposal. One source told Reuters that the family viewed Pernod as a “more prestigious acquirer” due to its broader international portfolio, which includes Jameson Irish Whiskey, Absolut Vodka and Malibu Rum. 

The structure of the two offers differed significantly. Pernod Ricard’s proposal was described as a largely stock-based transaction that would have resembled a merger of equals, allowing the Brown family to retain a meaningful stake and influence in the combined entity. 

By contrast, Sazerac’s reported bid required higher cash funding and leverage, and would have resulted in a full transfer of control away from the founding family. 

Sazerac reportedly generates more than $6 billion in annual net sales, compared with Brown-Forman’s approximately $4 billion, underscoring the scale of consolidation pressures facing the global spirits industry amid declining alcohol consumption and weaker volumes. 

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