Suntory Holdings Ltd., the closely held whiskey and beer maker, said it will buy Beam Inc. for $16 billion to gain brands such as Maker¡¯s Mark whiskey and create the world¡¯s third-largest premium spirits company.
Shareholders in the Deerfield, Illinois-based maker of Jim Beam and Canadian Club liquor will receive $83.50 in cash per share, the Tokyo-based company said Monday in a statement. That compares with Beam¡¯s last closing price of $66.97.
The purchase will help Suntory boost overseas growth to offset a shrinking home population.
¡°Strategically, it makes sense for Suntory,¡± said Trevor Stirling, an analyst at Sanford C. Bernstein in London. ¡°I¡¯m a little surprised they decided to go it alone, but at the moment you have a strong yen and low interest rates.¡±
Bloomberg News reported in December 2012 that Suntory had considered making an offer for Beam alongside Diageo, the world¡¯s biggest distiller.
The acquisition has ¡°very little cost synergies,¡± Stirling said, but allows Suntory greater exposure to the United States, the world¡¯s most profitable spirits market, and to expand Beam¡¯s brands in faster-growing Asian markets.
The $16 billion purchase price includes the assumption of Beam¡¯s outstanding net debt, according to the statement. The company has $2 billion in total debt, data compiled by Bloomberg show.
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