Brown-Forman Leans Toward Pernod Ricard Bid Over Sazerac: Source

• Pernod Ricard's proposed deal structure is 80% stock and 20% cash, allowing the Brown-Forman family to retain meaningful stake and influence in the combined company
• Sazerac has offered approximately $15 billion ($32 per share) in a more traditional buyout structure
• The family prefers Pernod due to its portfolio of more recognizable brands compared to Sazerac's offerings like Corazon tequila and Svedka vodka

Brown-Forman Favors Pernod Ricard Bid Over Sazerac Rival Offer

The family controlling Brown-Forman, maker of Jack Daniel's whiskey, is leaning toward a sale to French spirits giant Pernod Ricard over a competing bid from U.S.-based Sazerac, according to sources familiar with the matter.

Key Details:

The Brown-Forman family views Pernod Ricard as the more prestigious buyer, citing its portfolio of stronger, more recognizable brands. Sazerac has offered approximately $15 billion, or $32 per share, in a traditional buyout structure. In contrast, Pernod's proposal involves an 80% stock and 20% cash deal, though terms remain subject to change.

Strategic Implications:

A Pernod-Brown-Forman merger would create the world's second-largest spirits company by sales, trailing only London-based Diageo. The proposed structure would allow the Brown-Forman family to retain a meaningful stake and maintain some influence in the combined entity. This differs significantly from Sazerac's more conventional acquisition approach.

Companies Involved:

• Brown-Forman: Owner of Jack Daniel's
• Pernod Ricard: French distiller with premium brand portfolio
• Sazerac: U.S. spirits group controlled by the Goldring family, owner of Corazon tequila and Svedka vodka

All three companies have declined to comment on the reports. The preference for Pernod's bid was first reported by Bloomberg News on April 20. The deal structure suggests the family prioritizes brand prestige and continued involvement over maximum cash consideration, potentially signaling consolidation trends in the global spirits industry.