Brown-Forman spurns Sazerac’s $15bn takeover bid
Jack Daniel’s owner Brown-Forman has allegedly rejected Sazerac’s reported US$15 billion takeover bid just weeks after its merger talks with Pernod Ricard collapsed.
According to The Wall Street Journal, advisers for Brown-Forman informed Sazerac on Monday (11 May) that the company was rejecting the US$32-a-share cash offer the BuzzBallz owner recently made.
It is reported that Wells Fargo and Apollo Global Management financially backed Sazerac’s all-cash offer.
The deal would have allowed Brown-Forman’s Class A shareholders to either take cash or roll their shares into the new company.
Neither Brown-Forman nor Sazerac have publicly commented on the deal, which would have created an ‘exceptional concentration of American whiskey brands’, with Jack Daniel’s, Woodford Reserve, Buffalo Trace, Pappy van Winkle, Blanton’s and Eagle Rare all coming together under one roof.
The Spirits Business has reached out to both companies for comment.
While Brown-Forman is publicly traded, a majority of the company’s voting stock is controlled by Brown family members.
Meanwhile, Sazerac is privately held and entirely family-owned.
Both firms are based in Louisville, Kentucky.
It was reported that Brown-Forman’s merger attempts with Pernod Ricard failed due to issues with deal structure and economics. The decision to cease discussions was mutual, Pernod Ricard said.
Brown-Forman reported stagnant sales in the nine months to 31 January 2026 as Canada’s year-long ban on US alcohol significantly impacted its revenue.
The company is set to report its final audited results for the full fiscal year (ending 30 April 2026) on 4 June. Its reaffirmed full-year guidance shows the firm expects organic net sales growth in the range of 1% to 3%.
It is not known how Sazerac has performed financially due to its status as a privately held company.
The company’s most recent investment saw it back Kendall Jenner’s 818 Tequila.
Related news
Stock Spirits: mergers, acquisitions and creating value in a competitive market
