Brown-Forman has rejected a fresh takeover proposal from fellow US distiller Sazerac.
The terms of the new bid were not disclosed.
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The company’s board confirmed receiving the new “unsolicited” offer on Sunday (26 July) but concluded it was “not actionable”.
Sazerac – home to brands including Southern Comfort and Svedka vodka- had offered roughly $15bn for Brown Forman in April, as reported by the Wall Street Journal (WSJ).
That offer of $32-a-share was turned down by the Jack Daniel’s maker the following month.
A group of Brown family members holding majority of the company’s Class A shares have opposed the new proposal, saying the company is “well-positioned to deliver long-term value for all shareholders”.
They said Sazerac’s latest proposal “does not align” with that vision.
Marshall B. Farrer, the chairman of Brown-Forman, said: “Brown-Forman’s board and leadership team are confident that the company will continue to deliver long-term growth and shareholder value. The company remains focused on executing its strategic plan, including expanding its geographic footprint, building brands that resonate with consumers, and enhancing operational efficiency, while continuing to explore additional opportunities to create sustained value for all shareholders.”
TD Cowen analysts said the renewed proposal by the privately-owned Sazerac may have been linked to Brown-Forman’s CEO succession announcement.
“We suspect Sazerac’s renewed offer may have been prompted by Brown-Forman’s recent CEO succession news, though the company’s response reinforces our view that the company is effectively not for sale, with family control remaining the key obstacle to any change-of-control transaction,” the analysts said.
Earlier this month, Brown-Forman said president and CEO Lawson Whiting plans to retire and that the board has begun searching for a successor. Both internal and external candidates are being considered.
After a new CEO is appointed, Whiting will remain in an advisory capacity “for a period of time”, the company said at the time.
Brown-Forman also reaffirmed its fiscal 2027 guidance, forecasting net sales to be “approximately flat” and organic operating income to decline 3-5%. The company said “the operating environment for fiscal 2027 [will] remain challenging”.
For the year ended 30 April, net sales slipped 1% to $3.9bn.
Sazerac’s pursuit came after Brown-Forman and Pernod Ricard disclosed in March they had held talks on a possible deal to form a “partnership akin to a merger of equals”.
Those discussions ended in April without an agreement after the two companies failed to “reach mutually acceptable terms”.
