Jack Daniel’s Owner Reportedly Prefers Pernod Ricard Sale Over Sazerac’s $15B Offer

(Photo: Jack Daniel’s)

The Brown family, owners of the Brown-Forman, the corporation behind brands like Jack Daniel’s and Woodford Reserve, reportedly favor a sale to French spirits conglomerate Pernod Ricard over a reported $15 billion bid made by American firm Sazerac, per Bloomberg.

According to a “person familiar with the company’s thinking,” Brown-Forman feels that Pernod Ricard would be a better fit for the culture and aspirations of the company, Bloomberg reported. The nearly $18 billion firm has a larger geographical footprint and more recognizable spirits portfolio than competitor Sazerac, which is currently valued at $9.6 billion and generates approximately 75% of its revenue from North America. Reuters reports that a source said the Brown family views Pernod as “the more prestigious acquirer.”

Of course, money is also a factor. Sources say that Pernod is offering a 80% stock, 20% cash buyout that would offer the Brown family a high degree of autonomy in running the company. Some part of the business would reportedly stay headquartered in Louisville, Kentucky — incidentally, the same city in which Sazerac has its national HQ.

The news follows nearly a month of merger rumors, much of which has remained unconfirmed by the three parties involved.

On the record, we know that Pernod Ricard and Brown-Forman were involved in “initial discussions” in March and have reportedly remained in discussions as recently as last week. The merger would combine two of the strongest spirits firms from across the Atlantic Ocean: Pernod Ricard, responsible for Jameson, Absolut Vodka, Malibu and The Glenlivet; Brown-Forman for Jack Daniel’s, Herradura, Diplomático and The Glendronach.

A wrench was thrown into negotiations last week when The Wall Street Journal reported that Sazerac made a $15 billion, cash-in-hand offer that valued Brown-Forman at $32 per share. Sazerac has not officially confirmed the report.

At the risk of dwelling too much on specific words, it’s intriguing that “prestige” was the phrase used to describe Pernod Ricard vis-à-vis Sazerac. Though its earliest iteration was created in 1805, Pernod Ricard as we know it today wasn’t technically formed until 1975. In contrast, Sazerac was founded in 185o in New Orleans, Louisiana.

In the over century and a half since, Sazerac has tackled the spirits industry with a two-pronged approach. On the one hand, the company owns highly sought-after — and undeniably prestigious — whiskey staples like Buffalo Trace and Pappy Van Winkle. On the other hand, it’s invested heavily into malt-based and ready-to-drink options like Fireball Cinnamon Whisky, Southern Comfort and BuzzBallz.