Overview
- Brown-Forman’s board concluded Sazerac’s renewed unsolicited proposal was “not actionable” after reviewing the terms and the views of Wolf Pen Branch, which represents the Brown family’s majority voting shares.
- Sazerac’s offer valued Brown-Forman at about $32 per share, roughly $15 billion, and included options for the family to roll equity, proportional board seats, and a higher dividend to win support.
- Sazerac first contacted Brown-Forman in May and sent a second letter in late July asking the company to engage, with Sazerac saying it remained flexible to improve terms if the board would negotiate.
- Brown-Forman said it will stick to its strategic plan to grow geographically, build its brands, and boost efficiency, and the family’s opposition makes a sale unlikely without a major change in terms or family support.
- The episode follows earlier talks between Brown-Forman and Pernod-Ricard this year, underlining heightened consolidation interest in the spirits sector and leaving Pernod as a potential but currently constrained suitor.