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Drinks all around! The Japanese company Suntory Holdings purchased Beam Inc. for $13.6 billion
to mark the first beverage corporate acquisition of 2014.
Suntory stakes the claim of producing the first batch of genuine Japanese whisky in
1929 and has since become a major player in the Japanese beverage industry.
This acquisition makes Suntory the world's third largest liquor producer and helps with
the global distribution of both Suntory and Jim Beam. Beam CEO Matt Shattock says, "Together
we will be a global leader in distilled spirits with the #3 position in premium spirits and
a dynamic portfolio across key categories."
Besides its namesake, Beam Inc. also produces Maker's Mark bourbon, Courvoisier cognac and
Sauza tequila.
There are several key elements of the deal that will affect shareholders and Beam employees.
Beam shareholders will get $83.50 in cash for each share, which is 25 percent more than
its closing value Friday. (Via Fox Business)
CEO Matt Shattock and other Beam employees will continue to operate the business. This
acquisition comes on the heels of other recent major beverage mergers.
Boulevard Brewing Company was purchased for $100 million by Belgian firm Duvel in October
of last year. (Via St. Louis Post-Dispatch)
But, the biggest beverage merger happened when Inbev, another Belgian company, bought
Anheuser Busch for $52 billion in 2008. (Via The New York Times)
Suntory is probably best known in the U.S., to Bill Murray fans, for appearing in this
scene in "Lost in Translation." (Via Focus Features)
Forbes says Suntory and Beam expect to bring in net sales of more than $4.3 billion a year.