Japan's Suntory Holding acquires spirits maker Beam Inc. in $16 billion deal

By Gina DiFalco,

Japan's Suntory Holdings acquired spirits maker Beam Inc. for over $13 billion on Monday. The Japanese company’s Yamazaki, Hakushu, Hibiki and Kakubin Japanese whisky, Bowmore Scotch whiskey and Midori liqueur will now be sold with Beam's Jim Beam and Maker's Mark bourbons, Courvoisier cognac and Sauza tequila under the same global brand.

Suntory bought Beam Inc. for $13.6 billion in cash and the total cost of the deal is $16 billion, including debt. They will also pay $83.50 a share.

According to USA Today, after the deal was announced, Beam’s stock rose 24 percent.

In a statement, Beam CEO Matt Shattock talked about the merging of the companies, "Together we will be a global leader in distilled spirits with the #3 position in premium spirits and a dynamic portfolio across key categories,” adding, “With particular strength in Bourbon, Scotch, Canadian, Irish and Japanese whisky, the combined company will have unparalleled expertise and portfolio breadth in premium whisky, which is driving the fastest growth in Western spirits."

According to Reuters, Suntory made the deal with financing from The Bank of Tokyo-Mitsubishi UFJ.

Beam will continue to run its business in the U.S. and Suntory is of course based out of Japan. It’s estimated that their combined yearly income will be $4.3 billion.

image: Wikimedia Commons



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