Suntory to Acquire Jim Beam Maker For $16 Billion

OSAKA, Japan and DEERFIELD, Ill.Suntory Holdings Limited announced an agreement to acquire U.S.-based Beam, Inc., the maker of Jim Beam, Makers Mark and Knob Creek bourbons, for approximately $16 billion. The transaction, expected to close second quarter 2014, will create a global leader in distilled spirits with the No. 3 position in premium spirits and annual net sales of more than $4.3 billion.

Suntorys combined portfolio will include Beam's Jim Beam, Maker's Mark and Knob Creek bourbons, Teacher's and Laphroaig Scotch whiskies, Canadian Club whisky, Courvoisier cognac, Sauza tequila, and Pinnacle vodka, and Suntory's leading Japanese whiskies Yamazaki, Hakushu, Hibiki and Kakubin, Bowmore Scotch whisky and Midori liqueur.

On completion of the transaction, Suntory and Beam plan to achieve growth in markets worldwide, including the United States, the world's largest spirits market, by leveraging a combined portfolio of strong brands, an expanded distribution network and fully sharing production and quality control.

Suntory and Beam already have a successful business relationship under which Suntory distributes Beam products in Japan, and Beam distributes Suntory's products in Singapore and other Asian markets. Beam's President and CEO Matt Shattock and the current Beam management team will continue to lead the business, which will be managed from Beam's headquarters outside Chicago.

This is a very exciting development that delivers substantial value for our stockholders and creates an even stronger global company with an excellent platform for future growth," said Matt Shattock, President and Chief Executive Officer of Beam Inc. "Together we will be a global leader in distilled spirits with the No. 3 position in premium spirits and a dynamic portfolio across key categories. With particular strength in Bourbon, Scotch, Canadian, Irish and Japanese whisky, the combined company will have unparalleled expertise and portfolio breadth in premium whisky, which is driving the fastest growth in Western spirits."