By Abigail Summerville April 15 (Reuters) - U.S. spirits group Sazerac has offered to buy Brown-Forman for about $15 billion, a source familiar with the matter said on Wednesday, complicating Pernod
Sazerac Makes $15 Billion Offer for Brown-Forman, Jack Daniel's Maker
Sazerac's Bid and Industry Implications
By Abigail Summerville
April 15 (Reuters) - U.S. spirits group Sazerac has offered to buy Brown-Forman for about $15 billion, a source familiar with the matter said on Wednesday, complicating Pernod Ricard's attempt to merge with the Jack Daniel's maker.
Details of the Sazerac Offer
The privately held company has offered Brown-Forman $32 a share, according to the source who declined to be named because the matter was confidential.
Market Conditions and Industry Challenges
Supply-chain disruptions and U.S. tariff uncertainty have squeezed alcohol companies already grappling with a pullback in consumption from pandemic highs. Consolidation could help them cut costs and use their greater scale to weather the turbulence.
Responses from Involved Parties
Sazerac declined to comment, while Brown-Forman and Pernod did not immediately respond to Reuters requests for comment.
Investor Reaction and Deal Structure
Shares of Brown-Forman closed about 1% higher at $29.57 on Wednesday, well below Sazerac's offer price, a sign that investors were weighing hurdles to the deal including the Brown family's controlling stake.
Comparison with Pernod Ricard's Approach
Unlike Sazerac's more traditional buyout offer, analysts have said the deal with Pernod could involve a share swap, which would allow the Brown family to preserve some control over the iconic bourbon maker it has run since 1870.
Ongoing Merger Talks
Brown-Forman was already in talks with Pernod about a possible tie-up when Sazerac recently approached the Kentucky-based distiller with a rival bid.
Strategic Fit and Market Impact
Analysts have also said Pernod's portfolio and global reach made the French spirits maker the better fit. A Pernod and Brown-Forman merger would create a stronger challenger to global spirits leader Diageo and give the combined group greater leverage in the crucial United States market.
Sazerac's Industry Position and Advantages
Sazerac's edge lies in its familiarity with Brown-Forman, forged through decades of ties in Louisville's tight-knit bourbon industry. A combination of the two would also mean greater clout in negotiations with major U.S. distributors, industry M&A advisers have said.
Recent Performance and Acquisition History
Brown-Forman's Financial Outlook
Last month, Brown-Forman maintained its fiscal 2026 forecast amid challenges from a volatile and uncertain macroeconomic environment. It has also been taking a hit in crucial markets such as the U.S. due to sluggish sales.
Sazerac's Expansion Through Acquisitions
New Orleans-based Sazerac has steadily broadened its portfolio over the years by snapping up popular liquor brands.
Key Acquisitions
A decade ago, it bought brands including Southern Comfort and Tuaca from Brown-Forman, and Pernod Ricard's Paddy whiskey. It followed that up in 2018 with the purchase of about 19 labels from industry giant Diageo.
Sazerac managed to get its hands on Svedka vodka in 2024 after Constellation Brands sold the brand to focus on its higher-margin businesses.
Media Coverage
The Wall Street Journal was the first to report on Sazerac's bid.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Pooja Desai)
