Brown-Forman Turns Down $15 Billion Takeover Offer from Sazerac, Per Reports

(Photo: Brown-Forman)

Jack Daniel’s owner Brown-Forman has turned down a $15 billion takeover bid from fellow US spirits firm Sazerac, per The Wall Street Journal. The news comes less than two weeks after a similar offer from French spirits giant Pernod Ricard fell apart due to disagreements over family control.

According to the WSJ, representatives from Brown-Forman informed Sazerac on Monday that it was rejecting its all-cash, $32-a-share offer. The proposal, news of which first broke in mid-April, was reportedly backed by Wells Fargo and Apollo Global Management.

Neither Brown-Forman nor Sazerac has publicly confirmed the report.

If successful, the acquisition would have combined two of Louisville’s most prolific whiskey makers under the same roof. Brown-Forman was founded in 1870, and today owns whiskey staples including Jack Daniel’s, Woodford Reserve and Old Forester. Sazerac is best known for high-end bourbon icons Buffalo Trace, Blanton’s and Pappy Van Winkle, in addition to products like Fireball Cinnamon Whisky and Southern Comfort.

For a time, it seemed the Jack Daniel’s owner had been wooed by a competing offer from Pernod Ricard. The companies confirmed that they were engaged in talks in March, describing the potential transaction as a “merger of equals.” According to an anonymous source quoted by Reuters, the Brown family viewed Pernod as “the more prestigious acquirer.”

The blockbuster deal fell apart at the end of April. A report from Semafor suggested that the agreement collapsed not over price, but over family pride. Brown-Forman is largely controlled by the Brown family, which holds about 80% of the company’s voting power, while Pernod remains influenced by the Ricard family, which controls about 21% of the French conglomerate. The two parties reportedly couldn’t agree on how much influence each family would wield in the merged business.

Throughout their months-long negotiations, both Pernod and Brown-Forman publicly addressed their potential merger. Sazerac, meanwhile, has yet to make a statement about its $15 billion offer, leaving much speculation in the hands of second-hand reports.