Japan’s Suntory to buy Jim Beam maker for US$16b

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Japan’s Suntory Holdings will buy the US maker of Jim Beam bourbon for $16 billion in a transaction that includes debt, creating the spirit sector’s third-largest player, a joint statement said on Monday.

Suntory is offering $83.50 per share for rival Beam Inc, a liquor group whose brands also include Maker’s Mark bourbon, Sauza tequila, Courvoisier cognac and Teacher’s whiskey, according to the statement.

Suntory is known for leading Japanese whiskies Yamazaki, Hakushu, Hibiki and Kakubin, as well as Bowmore Scotch whisky and Midori liqueur.

The deal, approved by the board of directors of each company, is expected to close in the second quarter of 2014 pending regulatory approval.

“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,” said Beam Inc’s president and chief executive Matt Shattock.

According to the statement, the deal will “create a stronger global player in premium spirits” that anticipates annual net sales of spirits products exceeding $4.3 billion.

“On completion of the transaction, Suntory and Beam aim to achieve growth in markets worldwide, including the United States,” the two companies said.

The definitive agreement, subject to Beam stockholder’s approval, includes the assumption of Beam’s outstanding net debt.

The transaction represents a 25 percent premium to Beam’s closing price of $66.97 on January 10.

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

Suntory was founded in Osaka in 1899. Beam Inc is headquartered in Deerfield, Illinois, just outside Chicago.

The current Beam management team will continue to head the business.

Under a previously established cooperation, Suntory distributes Beam products in Japan while Beam distributes Suntory products in Singapore and elsewhere in Asia.

 

 

Source : Channel News Asia | January 13, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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