Report: Brown-Forman rejects Sazerac’s $15 billion takeover offer
AI-generated summary reviewed by our newsroom.
- Brown-Forman rejected Sazerac’s $15 billion, $32-per-share takeover offer.
- Sazerac’s all-cash bid was reportedly backed by Wells Fargo and Apollo Global Management.
- Brown-Forman’s shares rose about 14% last month on word of the Sazerac offer.
The big whiskey blend is off the bar, at least for now.
According to the Wall Street Journal, Brown-Forman has rejected rival spirits maker Sazerac’s $15 billion purchase offer.
The WSJ, citing anonymous sources, reported Tuesday that the maker of Jack Daniel’s Tennessee Whiskey, Woodford Reserve and other premium brands has decided against accepting the $32-a-share offer from Sazerac, maker of Buffalo Trace, Pappy Van Winkle, and owner of BuzzBallz and Fireball Cinnamon Whisky.
Both companies are headquartered in Louisville.
Sazerac, which is privately held by William Goldring and family, reportedly made the offer after Brown-Forman and French spirits maker Pernod Ricard began merger talks. Those talks fell apart last month, although there have been some rumors that they could restart.
According to the Journal, Sazerac’s all-cash offer was financially backed by Wells Fargo and Apollo Global Management and it would have allowed Brown-Forman’s Class A shareholders, many of whom are family members, to either take cash or roll their shares into the new company.
Brown-Forman is publicly traded but the majority of the voting shares are controlled by the family. On word of Sazerac’s offer, Brown-Forman shares had risen 14% last month. The share priced dipped on news of the failure of Sazerac’s takeover offer.
Brown-Forman, like many in the bourbon industry, has been impacted in the last few years by a decline in consumer confidence, a slump in American drinking, a boycott in Canada and the global impact of President Trump’s trade war.
The company is set to report fourth-quarter earnings on June 4.
