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.
With the end of the year looming, just-drinks is running a series of 'Top Tens of the Year' in the run-up to Christmas. Here are the ten most read comment pieces by just-drinks' editor, Olly Wehring, ...
Bacardi Limited - Strategic SWOT Analysis Review provides a comprehensive insight into the company’s history, corporate strategy, business structure and operations. The report contains a detailed SWOT...
Brown-Forman Corporation (BFB) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled...
The world’s seventh largest spirits company, Bacardi also ranks 14th in the global wine market. This profile analyses Bacardi’s efforts to address the significant challenges facing its core fortified ...
- Are we kidding ourselves over craft spirits?
- What's behind Brown-Forman's Irish whiskey plans?
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- How good a sustainability fit are ABI and SAB?
- Interview - Heineken global activation director
- Diageo, Treasury Wine Estates quiet on wine sale
- Chandon to become "third pillar brand" for MH
- Brown-Forman silent on Southern Comfort report
- Pay freeze anger threatens Carlsberg UK site
- Stoli appoints international marketing director
- The IWSR Duty Free/Travel Retail Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research