Spirits leader Brown-Forman has turned down an unsolicited takeover proposal from alcoholic beverage firm Sazerac, labeling the offer as “not actionable.”
Wolf Pen Branch, LP, which represents the majority of Brown-Forman Class A shareholders comprising members of the Brown family, stated that this proposal does not fit with their vision for the company’s future.
They emphasized: “As fourth-, fifth- and sixth-generation shareholders of Brown-Forman, we care deeply about the company – its brands, its people, and its culture.”
They further stated: “We are confident in the strength and competitive position of the business and believe the company is well-positioned to deliver long-term value for all shareholders. We have concluded that Sazerac’s proposal does not align with this vision for Brown-Forman’s future.”
Operating from its headquarters in Louisville, Kentucky, Brown-Forman employs approximately 4,900 people globally and boasts a distinguished portfolio featuring brands like Jack Daniel’s, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane.
Marshall B. Farrer, chairman of Brown-Forman, remarked: “Brown-Forman’s Board and leadership team are confident that the company will continue to deliver long-term growth and shareholder value.”
He added: “The company remains focused on executing its strategic plan, which includes expanding its geographic reach, developing brands that connect with consumers, and improving operational efficiency, while also seeking additional opportunities to create sustained value for all shareholders. We are eager about the future, especially the next phase of leadership.”
This development comes on the heels of reports indicating that Brown-Forman previously dismissed a $15 billion acquisition offer from Sazerac earlier in the year, along with the failed merger discussions with Pernod Ricard.