Brown-Forman Shares Surge 12.9% after Sazerac Approaches for Possible Acquisition
Brown-Forman shares jumped 12.9% on April 9 after Sazerac privately-owned distiller approached for a possible acquisition. Two weeks earlier Brown-Forman and Pernod Ricard revealed merger-of-equals discussions that could create the largest spirits transaction in over a decade.
1. Share Price Reaction
On April 9 Brown-Forman shares rallied by 12.89%, reaching $30.31 in midday trading and marking the largest one-day gain since talks with Pernod Ricard were announced.
2. Sazerac Approach and Background
Privately-owned distiller Sazerac, controlled by the Goldring family, approached Brown-Forman for a potential acquisition after recent deals including the purchases of Dirty Shirley and vodka brand Svedka.
3. Pernod Ricard Talks and Deal Impact
On March 26 Brown-Forman and Pernod Ricard publicly revealed merger-of-equals discussions that analysts say could produce the largest spirits deal in over a decade and create a clear number-two US player behind Diageo.