DEERFIELD, Ill. - Beam (BEAM), the maker of Jim Beam and Maker's Mark bourbons along with other liquor brands, has agreed to be acquired by Japan's Suntory Holdings Ltd. for approximately $13.62 billion.
Shares of the spirits maker jumped in Monday premarket trading.
Suntory has a portfolio of spirits,
with whiskies including Yamazaki and Hakushu as well as Midori liqueur and
other beverages. It already distributes Beam's products in Japan. Beam
distributes Suntory's products in Singapore and other Asian markets.
Suntory President and Chairman
Nobutada Saji said in a statement that the acquisition will help Suntory
further its global growth.
The combined company is expected to
have annual sales of spirits products of more than $4.3 billion.
Beam President and CEO Matt Shattock
and the Deerfield, Ill., company's current management will continue to run the
Suntory will pay $83.50 per share, a
25 percent premium to Beam's Friday closing price of $66.97. The companies put
the deal's value at about $16 billion, including debt.
Suntory plans to fund the deal with
available cash and fully committed financing from The Bank of Tokyo-Mitsubishi
Both companies' boards unanimously
approved the transaction, which is targeted to close in the second quarter.
The deal needs approval from Beam Inc.
Beam's stock gained $16.41, or 24.5
percent, to $83.38 in premarket trading about two hours before the market open.