Japan’s privately held Suntory Holdings Ltd. and US drinks giant Beam Inc. jointly announced today that Suntory will acquire Beam, owners of Jim Beam, Maker’s Mark, Laphroaig, Ardmore, Knob Creek, Kilbeggan and many more, for the sum total of $16 billion, which includes the assumption of Beam’s outstanding net debt.
Suntory will be purchasing shares of Beam for a total of $13.6 billion, a 25 percent premium above last Friday’s closing price – $83.50 per share compared to Friday’s closing price of $66.97 per share.
This is the largest acquisition move made by Suntory, whose current portfolio already includes Yamazaki, Hibiki, Hakushu, Bowmore and several other drinks brands.
The transaction, which has been unanimously approved by each company’s board of directors, is expected to close in the second quarter of 2014, subject to Beam stockholders’ approval, regulatory approvals and other customary closing conditions. Beam’s President and Chief Executive Officer Matt Shattock and the current Beam management team will continue to lead the business, which will be managed from Beam’s headquarters outside Chicago, Illinois.
Nobutada Saji, President and Chairman of Suntory’s Board, said, “I am delighted that we can announce this agreement with Beam, a company with a portfolio of leading global brands, including Jim Beam and Maker’s Mark, and a strong global distribution network. I believe this combination will create a spirits business with a product portfolio unmatched throughout the world and allow us to achieve further global growth. We are particularly excited about the prospect of working more closely with Beam’s excellent management and employees who will play an integral part in the growth of the business.”
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