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Brown-Forman to drink up 86
Posted on Monday, 10 June 2019 14:35
Brown-Forman has agreed to buy US-based the 86 Company, the maker of premium gin brand Fords Gin, for an undisclosed sum.
The transaction is subject to the usual customary closing conditions and is expected to complete within the next 30 days.
As a result of the deal, Brown-Forman will add Fords Gin to its existing alcohol portfolio, which already includes names such as Jack Daniel’s, Korbel and Old Forester.
The target’s leading brand was created by 86 co-founder Simon Ford and distiller Charles Maxell as part of their strategy to introduce a spirit that could be used in any gin-based cocktail, regardless of the recipe ingredients.
Ford said: “Brown-Forman is a great partner to bring Fords Gin to more bartenders and consumers in the US and around the world while keeping our commitment to producing a unique, high quality, mixable gin.”
Upon closing, 86 will continue to be involved with the building and crafting of the brand.
Established in 1870, Brown-Forman is billed as one of the top ten largest spirits companies in the world.
The group has over 4,600 employees, 1,300 of which are based in its Louisville headquarters, and sells more than 25 global brands.
For the quarter ended 30th April 2019, Brown-Forman posted net sales of USD 744.00 million, a 1.0 per cent increase on USD 7.33 million in the corresponding period of 2017.
According to Zephyr, the M&A database published by Bureau Van Dijk, there have been just 18 deals targeting wine and distilled alcoholic beverage merchant wholesalers announced worldwide since the beginning of 2019.
In the largest of only four deals to surpass the USD 1.00 million-barrier, Fraser and Neave injected new shares worth SGD 76.00 million (USD 55.76 million) into its Singapore-based subsidiary InterF&B.
Other targets include EPC Champagne, Platinum Wines and Cutwater Spirits.
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