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Brown-Forman confirms it is ‘not for sale’
Following reports that Brown-Forman had been approached with an acquisition offer from Constellation Brands, the group has reiterated that it is “not for sale”.
Jack Daniel’s maker Brown-Forman has reiterated it is “not for sale”
Earlier this week, CNBC reported that Louisville-based Brown-Forman, maker of Jack Daniel’s Tennessee whiskey, rejected an acquisition offer from New York-based Constellation Brands, which produces Corona beer and Svedka vodka.
Brown-Forman is a public company, but fifth generation members of its founding Brown family own a majority shareholding.
The group initially declined to comment on CNBC’s report, but George Garvin Brown IV, chairman of the board of directors, and Paul Varga, chief executive officer, have now released the following statement:
“As a matter of corporate policy, Brown-Forman does not comment on market rumours or speculation. However, it is important to reiterate that Brown-Forman is not for sale.
“For nearly 150 years, the company and the Brown family have been committed to preserving Brown-Forman as a thriving, family-controlled, independent company. That commitment is unchanged, and our goal is to continue creating value for all shareholders for generations to come.”
According to Market Watch, Brown-Forman has a value of US$22.24 billion, while Constellation Brands’s value sits at US$35.53 billion.
In its latest set of financial results, Brown-Forman reported flat sales due to weakness in a number of emerging markets. However, the firm’s whiskey portfolio – which includes the Jack Daniel’s, Woodford Reserve and Old Forester brands – continued a strong performance.