Brown-Forman is said to have a US$3bn acquisitions fund

Brown-Forman is said to have a US$3bn acquisitions fund

Brown-Forman has declined to confirm that it is looking to up its presence in the vodka and whiskey categories.

Late yesterday (1 October), an analyst said the Jack Daniel's maker has a potential US$3bn to spend on acquisitions, with Scotch whisky, Irish whiskey and vodka high on its list of targets. But, a Brown-Forman spokesperson has told just-drinks that he could not say anything about the company's M&A strategy.

The spokesperson added: “We are always alert to possible acquisitions that we believe would do well in our hands.”

Analyst Nomura said it had "recently spent some time" with Brown-Forman, noting that the company "continues to outperform" the international spirits market.

Nomura said Brown-Forman will fund any deal with a 2.5x net debt/ebitda leverage that should free up $3bn, adding that smaller specific brand or country deals would be expected.

Last year, Brown-Forman spent an undisclosed sum buying up the Maximus vodka brand from Altia Corporation.