News
Brown-Forman · Mergers & Acquisitions · Sazerac · Spirits Industry
U.S. private spirits giant Sazerac has offered to acquire Brown-Forman for $15 billion, or $32 per share, intensifying a takeover battle that already involved French spirits giant Pernod Ricard, causing Brown-Forman's BF.B stock to rise approximately 3% early Thursday.
Sazerac's bid represents an 8.2% premium to Brown-Forman’s closing price of $29.57 on Wednesday, as reported by the Wall Street Journal. Brown-Forman previously confirmed acquisition discussions with Pernod Ricard, describing a potential arrangement as a "merger of equals." The acquisition interest emerges amidst U.S. tariffs pressuring alcohol companies, though Brown-Forman reaffirmed its sales forecast after beating third-quarter revenue estimates.
Analysts have lifted ratings on BF.B due to merger potential; Citi's Filippo Falorni reaffirmed a Hold rating with a $31 price target, implying 5% upside, while JPMorgan's Drew Levine also moved to Hold, raising his price target from $25 to $27, which implies 9% downside risk. Wall Street's consensus rating for Brown-Forman shares remains a Hold, with an average price target of $27.94, indicating approximately 6% downside potential.
