Sazerac has privately approached members of the Brown family who control Brown-Forman, the maker of Jack Daniel's, to reconsider its roughly $15 billion takeover offer, which valued the company at $32 per share. This renewed push comes after Brown-Forman's board formally rejected Sazerac's all-cash bid in May. The offer stipulated that Brown-Forman's Class A shareholders could opt for cash or roll their shares into the new private entity, with financial backing from Wells Fargo and Apollo Global Management.
Sazerac's initial offer in April followed the breakdown of merger talks between Brown-Forman and Pernod Ricard. While the Brown family, which owns the majority of Brown-Forman's voting stock, reportedly favored Pernod Ricard as a more prestigious acquirer with a stronger brand portfolio, the spirits industry now faces a prolonged slump from declining alcohol consumption. This downturn has led to falling multiples for consumer goods companies, making scale through mergers and acquisitions an attractive strategy for industry players.
Brown-Forman publicly disclosed the unsolicited offer from Sazerac in May, clarifying its rejection. Sazerac, which owns popular brands like Buffalo Trace whiskey and Fireball, is itself family-owned. The attempt to resurrect the deal highlights the strategic maneuvering in a consolidating spirits market, where companies are seeking to gain an advantage through increased scale.
