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Jim-Beam

Beam deal propels Suntory into major league of global drinks firms

 

The group has been on every big drinks company’s wish-list since it was spun off from Fortune Brands in late 2011. And there’s no quibbling with the price. Suntory is paying 20 times Bean’s ebitda for the year to September 2013 and 6.2 times sales – right up there with the fizziest multiples for drinks deals.

The acquisition comes after the Japanese group stunned the market last year with a knock-out offer for soft drinks brand Lucozade and Ribena, which were offloaded by GlaxosmithKline in a £1.35bn deal.

Beam reported $2.5bn of sales in 2012 while Suntory reported sales of $17.6bn.

“I believe this combination will create a spirits business with a product portfolio unmatched throughout the world and allow us to achieve further global growth. We are particularly excited about the prospect of working more closely with Beam’s excellent management and employees who will play an integral part in the growth of the business,” Nobutada Saji, President and Chairman of Suntory’s Board, said.

Beam’s brands will sit alongside Suntory’s increasingly trendy Japanese whiskies, Yamazaki, Hakushu, Hibiki and Kakubin as well as Bowmore Scotch whisky and Midori liqueur.

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.