Brown-Forman Rejects Sazerac’s $15 Billion All-Cash Takeover Offer

Brown-Forman Corp., the maker of Jack Daniel’s, rejected a $15 billion all-cash takeover approach from privately held rival Sazerac on May 12, according to a source familiar with the matter. The offer valued Brown-Forman at $32 per share, the source said. The rebuff comes after merger talks with French spirits maker Pernod Ricard ended in late April.

Sazerac owns brands including Corazon tequila and Svedka vodka. It had emerged as a competing suitor during Brown-Forman’s discussions with Pernod Ricard, the source said.

The source added that the family that controls Brown-Forman had favored a potential sale to Pernod Ricard over Sazerac’s proposal.

Terms of Sazerac’s approach

Under the latest proposal, Sazerac offered $32 per share in cash, valuing the deal at about $15 billion, the source said. The structure would have given Brown-Forman’s Class A shareholders a choice between taking cash or rolling their shares into the new combined company, according to the source.

Brown-Forman and Sazerac did not immediately respond to requests for comment on the rejected offer.

What happened with Pernod Ricard talks

The rejection follows the end of merger discussions between Brown-Forman and Pernod Ricard in late April, according to the source. Sazerac had been viewed as an alternative bidder during those talks.

Any renewed dealmaking interest in Brown-Forman is likely to focus on whether potential bidders can win support from the company’s controlling family and on what terms shareholders could be offered.