Suntory’s $13.6 billion deal for the maker of Jim Beam is the third-largest acquisition by a Japanese company of a non-Japanese company, according to Thomson Reuters, based on a $16 billion valuation that includes the assumption of debt.
The acquisition continues a trend in recent years for big-ticket alcohol purchases, although the largest buyers have had more of a taste for beer:
InBev Buys Anheuser-Busch: InBev, a Belgian brewer, bought Anheuser-Busch, the maker of Budweiser, in a $52 billion merger in 2008. The all-cash deal created Anheuser-Busch InBev, the world’s largest brewer, and united the Budweiser, Michelob, Stella Artois, Bass and Brahma brands under one roof. It also gave control of America’s largest beer maker to a European rival.
Anheuser-Busch Buys Grupo Modelo: Last year, Anheuser-Busch InBev finally got clearance to complete its $20.1 billion takeover of Grupo Modelo of Mexico, the maker of Corona. To do so, Anheuser-Busch had to settle an antitrust lawsuit with the Justice Department that required it to sell a stake in Crown Imports, which distributes Corona, and the Piedras Negras brewery for more than $5 billion.
Scottish & Newcastle Sold: In 2008, the European beer rivals Carlsberg and Heineken agreed to buy the British brewer Scottish & Newcastle for $15.4 billion. It was an unusual arrangement - Carlsberg and Heineken agreed to take different parts of the business in a way that gave each company a competitive advantage in competing markets. Carlsberg agreed to take the Russian brewing operation, while Heineken got the British business. The deal further consolidated an industry that had been hurt by tighter bans on smoking in pubs and bars and a generally sluggish economy.
SABMiller Buys Foster’s: Foster’s, the Australian beer maker, finally surrendered to a hostile $10.15 billion takeover bid from SABMiller, the global brewer, in 2011. The deal ended a four-month battle and gave SABMiller access to a big chunk of the Australian beer market (Foster’s owned seven of the country’s top 10 brands, including Victoria Bitter).
Vin & Spirit Sold to Pernod Ricard: In 2008, the French liquor company Pernod Ricard toasted its deal to buy Sweden’s Vin & Spirit, the maker of Absolut vodka, for $8.9 billion. The deal was so big, in fact, that it drew an antitrust challenge from the Federal Trade Commission. The case was eventually settled, with Pernod agreeing to divest its distribution interests in Stolichnaya, one of the most popular vodka brands in the United States.
Merger Forms Diageo: Plans to increase wine and alcohol sales spurred the merger of Grand Metropolitan and Guinness, two of Britain’s leading companies. The 1997 deal created Diageo, one of the world’s largest liquor purveyors. Diageo has since pushed into emerging markets through acquisitions, including the 2011 deal for the Turkish liquor company Mey Icki for $2.1 billion and the acquisition a year later of United Spirits, India’s largest liquor company, for $2 billion.
