US: Beam Inc snaps up Pinnacle, Calico Jack from White Rock Distilleries
Beam Inc is spending US$605m on Pinnacle vodka as well as the Calico Jack rum brand
Beam Inc has confirmed that it will acquire the Pinnacle vodka and Calico Jack rum brands from White Rock Distilleries for US$605m.
The purchase, announced earlier today (23 April), should complete during the second quarter. Beam noted that the $605m, which will also buy “other related assets”, values the two brands at around 17 times projected 2012 standalone EBITDA.
“(Beam) has identified significant potential cost synergy opportunities – expected to exceed 20% of the brands’ net sales – particularly from leveraging Beam’s US distribution and supply chain scale, procurement benefits and overhead efficiencies,” the company said.
“Pinnacle is an excellent strategic fit for Beam, giving us a strong … growth platform in the sweet-spot of the attractive vodka category,” said Beam's president & CEO, Matt Shattock. “With the synergy-driven addition of Pinnacle, which will become one of our largest Power Brands, Beam will further enhance its ability to maximise value for shareholders.”
The funds will be raised by either existing credit facilities or new debt.
Pinnacle, which has original and flavoured variants in its portfolio, is the fourth largest imported vodka brand in the US and carries an SRP of between $12.99 and $13.99 per 75cl bottle, according to Beam.
Beam Inc has confirmed details of its latest dividend payment....
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