BREAKING NEWS: Suntory acquire Beam in $16bn deal

(TDB) - Japanese drinks company Suntory Holdings has acquired US Beam Inc. in a deal worth $16 billion.

Suntory Holdings Limited, based in Osaka, and US based Beam Inc. announced today they have entered into a “definitive agreement” whereby Suntory will acquire all shares of Beam for $83.50 each and take on its outstanding debt in a deal worth $16bn.

The acquisition, which will bring together Beam’s brands including Jim Beam, Sauza Tequila, Courvoiser Cognac and Knob Creek Bourbon with Suntory’s leading Japanese whiskies Yamazaki, Hakushu, Hibiki, and Kakubin, Bowmore Scotch whisky and Midori liqueur, is expected produce annual net sales of spirits of more than $4.3bn.

Nobutada Saji, president and chairman of Suntory’s Board, said: “I believe this combination will create a spirits business with a product portfolio unmatched throughout the world and allow us to achieve further global growth.

“We are particularly excited about the prospect of working more closely with Beam’s excellent management and employees who will play an integral part in the growth of the business.”

Matt Shattock, president and chief executive officer of Beam Inc said: “This is a very exciting development that delivers substantial value for our stockholders and creates an even stronger global company with an excellent platform for future growth.”

“Together we will be a global leader in distilled spirits with the number three position in premium spirits and a dynamic portfolio across key categories.

“With particular strength in Bourbon, Scotch, Canadian, Irish and Japanese whisky, the combined company will have unparalleled expertise and portfolio breadth in premium whisky, which is driving the fastest growth in Western spirits.

“Our combined global routes to market will expand our joint distribution footprint, and the powerful innovation capabilities both companies have developed will be a significant advantage.”

“Backed by the expertise and the financial resources of Suntory, the people of Beam look forward to working with the Suntory team to continue outperforming our global market and to building on the proud traditions and deep heritage of our brands across all the major spirits categories.”