Brown-Forman Corporation has rejected a renewed $15 billion all-cash takeover bid from privately held spirits company Sazerac, calling the offer not actionable. Sazerac’s proposal of $32 a share represents roughly a 23% premium to Brown-Forman’s recent closing price, though the company’s actual market value is closer to $13 billion. The Brown family, through a voting group called Wolf Pen Branch, controls more than half of Brown-Forman’s voting stock, meaning no sale can happen without their approval. Sazerac first made the offer on May 1 and sent a new letter on July 24 directly to Class A shareholders, most of whom are Brown family members, asking them to reconsider. Brown-Forman has seen its revenue decline for three straight years, its Jack Daniel’s brand lose U.S. market share, and its CEO announce retirement, while separate merger talks with Pernod Ricard collapsed in late April.
Brown-Forman CorporationRejects takeover bid, but company faces declining revenue and market share loss.
Pernod Ricard S.A.
DXC Technology CoRenewed takeover bid for Brown-Forman, though rejected, shows strategic interest.
