Suntory to Acquire Beam in $16 Billion Deal

Posted on January 14, 2014

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Suntory, a a Japanese brewing and distilling company, has announced plans to acquire Beam in a $16 billion deal. The $16 billion valuation includes Suntory taking on Beam's debt. Beam's products include Jim Beam, Canadian Club whiskey, Pinncale vodka and more. The deal is expected to in the second quarter of 2014. Suntory will acquire Beam shares for $83.50 per share. The transaction consideration represents a 25% premium to Beam's closing price of $66.97 on January 10, 2014. The deal has been approved by the board of directors from both companies.

Nobutada Saji, president and chairman of Suntory's Board, said in a statement, "I am delighted that we can announce this agreement with Beam, a company with a portfolio of leading global brands, including Jim Beam and Maker's Mark, and a strong global distribution network. 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."

Suntory and Beam already have some relationships. Suntory distributes Beam products in Japan and Beam distributes Suntory's products in Asia. Reuters reports that the combined entity will be the third largest whiskey company according to International Wine & Spirit Research.

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