Suntory of Japan Buys Maker of Jim Beam for $13.6 Billion

on 13/01/14 at 9:42 am

Booze News

indexSuntory, a privately held giant known for producing Japan’s first whiskey, has agreed to acquire the maker of Jim Beam and Maker’s Mark bourbons and Teacher’s and Laphroaig Scotch whiskies, for $13.6 billion.

Suntory, based in Osaka, is offering Beam shareholders $83.50 a share in cash, 25 percent above am’s closing stock price on Friday. It represents a multiple of more than 20 times Beam’s earnings before interest, taxes, depreciation and amortization for the 12 months ended Sept. 30.

Including the assumption of debt, the deal, which was announced on Monday, is valued at $16 billion.

The transaction is the first major takeover of 2014, as deal makers expect corporate chiefs to expand their businesses by buying other companies.

The deal is the biggest ever struck by Suntory, whose beverage empire includes Yamazaki Japanese whisky, Bowmore Scotch and Midori liqueur. The company’s previous largest transaction was its purchase of Orangina Schweppes from a consortium of investors for more than $3 billion in 2009.