Beam Inc. (BEAM) to be Acquired by Suntory for $16 Billion

Shares of Beam Inc. (BEAM) closed up +16.45 or +24.56 percent to $83.42 per share on Monday, after news that Japanese spirits and beverage company Suntory was acquiring the whiskey distiller in a deal worth roughly $16 billion. Suntory is paying $13.6 billion in cash and assuming Beam Inc.â s net debt. With the acquisition, Suntory will add the Makerâ s Mark line of whiskeys to Courvoisier cognac, Sauza tequila and Bowmore Scotch whiskey, brands whose companies were already acquired by the Japanese company.

Suntory already makes Hakushu, Kakubin, Yamazaki and Hibiki Japanese whiskey brands. Deerfield, Illinois based Beam Inc. was founded in 1904 and is a major producer of Scotch, rye and bourbon whiskies, in addition to producing vodka, rum, cognac, cordials and other pre-mixed cocktails. The company was established after the Fortune Brands holding company spun off and sold the distiller in October of 2011. Beamâ s most recognizable brands include Jim Beam, Makerâ s Mark, Old Crow, Old Grandad and Knob Creek whiskies, in addition to a line of Scotch, Canadian and Irish whiskies. Beam also owns tequila maker Sauza, Courvoisier cognac, VOXâ s Wolfschmidt vodka and Gilbeyâ s Gin, as well as Fundador and Terry Centenario brandy to name only a few. Osaka, Japan based Suntory Holdings is a privately held firm specializing in Japanese whiskey. The acquisition of Beam Inc. will make Suntory the worldâ s third largest beverage distiller with a portfolio of leading brands across all key spirits categories. Suntoryâ s U.S. presence made up only one percent of sales before the takeover, the company will now have a significant foothold in the U.S. market. In an interview with Forbeâ s magazine, Beam Inc. president and CEO Matt Shattock commented on the acquisition. â

Published on Jan 14, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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