Pernod finalises Castle Brands acquisitionBy Owen Bellwood
Absolut owner Pernod Ricard has completed its acquisition of US spirits firm Castle Brands, taking an 89.52% stake in the company.
The purchase, which was announced in August, saw Pernod Ricard buy a total of 150,335,952 shares of common stock from Castle Brands, each valued at US$1.27.
Carried out through a subsidiary of Pernod Ricard, the acquisition will see Pernod Ricard take control of the Jefferson’s Bourbon brand, Goslings rum, Knappogue Castle Irish whiskey and others.
Alexandre Ricard, chairman and chief executive officer of Pernod Ricard, said: “We’re thrilled about the closing of the Castle Brands acquisition and the opportunity it offers us in the world’s largest spirits market, the US, a priority market for the group.”
As a result of the tender offer and the merger, Castle Brands has become an indirect wholly-owned subsidiary of Pernod Ricard, and Castle Brands’ common stock will cease trading on the New York Stock Exchange.
Following the merger, any Castle Brands common stock held by the remaining shareholders who did not tender their shares were cancelled and converted into the right to receive the same US$1.27 per share price. Castle Brands shareholders who did not tender their shares will be informed on how to receive payment for their shares in connection with the merger.
The acquisition of Castle Brands follows Pernod Ricard’s expansion into the American whiskey segment with the announcement of its purchase of the Texas-based Firestone & Robertson Distilling Co earlier this month, Kentucky distillery Rabbit Hole in June this year and West Virginia-based Smooth Ambler in 2017.