just the Facts - Suntory's US$16bn move for Beam
The deal is expected to complete in 2014's second quarter
The biggest proposed deal in the spirits industry in five years was annnounced yesterday (13 January) with Suntory agreeing to acquire Beam Inc for US$16bn.
Here, just-drinks looks at the companies in more detail and the facts and figures behind the deal:
The Deerfield, Illinois headquarted group's spirits portfolio includes:
Bourbons: Jim Beam, Maker's Mark, Knob Creek.
Scotch whisky: Teacher's, Laphroaig
Irish whiskey: Kilbeggan
Other whisk(e)y: Canadian Club whisky
The group has a 19.5% global share of US whiskey sales, according to 2012 Euromonitor figures. It has a 5% share of all whiske(e)y sales globally.
The Osaka, Japan-headquartered group's spirits portfolio includes:
Japanese whiskies: Yamazakai, Hakushu, Hibiki and Kakubin
Scotch whisky: Bowmore
The group also has significant brewing operations and is Japan's biggest soft drinks producer by sales. It also operates in the wine and RTD categories.
Suntory will pay US$83.50 per share. Shares in Beam rose 24% on Wall Street yesterday, close to the offer price.
The $16bn price tag is 20 times Beam's EBITDA in its most recent results.
The deal is expected to close in the second quarter of 2014, subject to Beam stockholders’ approval, regulatory approvals and other customary closing conditions.
Beam is currently the fifth largest spirits group by sales globally. The deal will see the combined entity leapfrog Brown-Forman and Bacardi, taking it into third spot behind Diageo and Pernod Ricard.
Suntory has a global workforce of around 28,000, while Beam has 3,400 employees.
Beam's management will be retained and remain in Illinois.
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