Whiskey Maker Beam to Be Swallowed Up by Suntory

By Trey Thoelcke Published Jan 13, 9:45AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Beam Inc. (NYSE: BEAM), the maker of Jim Beam and Marker’s Mark alcohol brands, has agreed to be acquired by Japan’s Suntory Holdings. Suntory will pay $83.50 per share, which is a 25% premium to Beam’s Friday closing price of $66.97. The deal’s total value, including Beam’s outstanding debt, was placed at about $16 billion.

The two companies were already well-acquainted. Suntory distributes Beam’s products in Japan, and Beam distributes Suntory products in Singapore and other Asian markets. Beam’s brands will join those of Suntory, which include whiskies Yamazaki and Hakushu, as well as Midori liqueur.

The deal will create an international alcohols conglomerate with net sales of $4.3 billion. That is more than competitor Brown-Forman Corp. (NYSE: BF-B) but less than Diageo PLC (NYSE: DEO). Beam’s president and chief executive officer, Matt Shattock, and the current Beam management team will continue to lead the business from Beam’s headquarters near Chicago.

Shattock said:

Together we will be a global leader in distilled spirits with the #3 position in premium spirits and a dynamic portfolio across key categories. With particular strength in Bourbon, Scotch, Canadian, Irish and Japanese whisky, the combined company will have unparalleled expertise and portfolio breadth in premium whisky, which is driving the fastest growth in Western spirits.

The boards of both companies unanimously approved the transaction. It is expected to close in the second quarter of 2014, pending approval from Beam shareholders and other customary closing conditions.

Beam shares opened Monday around $83.41. The previous 52-week range was $59.66 to $70.63.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.