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Suntory Buying Jim Beam (BEAM) for $16 Billion

By  +Follow January 13, 2014 4:19AM
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With roots dating back before the Industrial Revolution, Jim Beam (BEAM) has long been America’s bourbon. Originally called “Old Tub” (the first bottle sold in 1795 by Jacob Beam was actually called “Old Jake Beam Sour Mash”), the Bardstown, Kentucky liquor survived whisky rebellions and Prohibition to grow into a multi-billion-dollar stalwart, producing not only its namesake brand and Maker’s Mark bourbon, but a bevy of other drinks, including cognac, vodka, tequila, rum and DeKuyper Cordials, to name a few.

It’s a far different world today than old Jake growing corn in a field and making whisky by his own hand 219 years ago. Now, Japan’s first whisky-maker says that it is buying Beam. No, not a bottle or a case; the whole company. Osaka-based Suntory Holdings Ltd, a privately held beverage behemoth and parent to Suntory Beverage, has agreed to acquire Beam for $83.50 per share in cash in a deal worth about $16 billion, including the debt that Suntory will assume.

Filmgoers may known of Suntory through Bill Murray’s 2003 film “Lost in Translation,” in which he states, “For relaxing times, make it Suntory time.” 

Suntory, which had 2012 sales of $17.6 billion, has a full portfolio of alcoholic and non-alcoholic beverages, including its flagship single malt whisky Yamazaki. Established in 1899 by Shinjiro Torii, Suntory became Japan’s first whisky producer with Yamazaki in 1923. The company joined the Tokyo Stock Exchange in the country’s largest IPO last year, trading under the symbol 2587.

The offer represents a 25 percent premium to Beam’s closing price of $66.97 on Friday and more than 20-times Beam’s earnings before interest, taxes, depreciation and amortization (EBITDA) for the year ended September 30, 2013.

Both companies’ boards have unanimously approved the acquisition. The transaction is expected to close in the second quarter.

Per the deal, Beam CEO Matthew Shattock along with the rest of his management team will stay on board to head the company's operations. Calling the development “very exciting,” Shattock said in a statement this morning, “Together we will be a global leader in distilled spirits with the #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.”

Suntory is known for continued expansion through acquisitions, but the purchase of Beam is the largest in its history. Previously, the company bought Orangina Schweppes Group in 2009 for more than $3 billion. In September, Suntory bough the Lucozade and Ribena drink brands from GlaxoSmithKline (GSK) for $2.1 billion. Locozade is an energy drink that competes with Coca-Cola’s (KO) Powerade and Pepsi’s (PEP) Gatorade. Suntory also bought 51-percent of Pepsi’s Vietnam soft drink business in 2013.

With its relentless pursuit of expansion, Suntory is walking the walk, not just talking the talk of its slogan “Yatteminahare” (Go for it) put in place by its founder Torii many years ago.

Shares of Beam have jumped to near the acquisition price and are holding steady in the area in early Monday trading.

DISCLOSURE

Results for BEAM
AllyGMorrison
19 Apr 14 11:51:04
$BEAM Researchers Testing Laser Beam Which Could Stimulate Rain And Lightning http://t.co/fQ0sa1645A
Stock Herald
19 Apr 14 11:12:33
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/flB1H36CJ2
Informer
19 Apr 14 10:13:05
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/rBnh4Q0Aqa
$Stocknewsalerts
19 Apr 14 09:10:47
$BEAM Information for Beam Inc.
Stock Herald
19 Apr 14 08:11:12
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/flB1H36CJ2
Informer
19 Apr 14 07:11:06
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/XdzBweRvyb
GavinGreenberg
19 Apr 14 06:12:08
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/ZtdhQvP6nN
Stock Herald
19 Apr 14 05:11:34
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/flB1H36CJ2
Gary Rosovsky
19 Apr 14 04:31:21
Todays movers to research $BEAM $FTI $ATK $TUR #NSE http://t.co/3eRH8U8Zv4
Esau Braxton
19 Apr 14 04:11:36
Are you thinking of selling $BEAM $BA $BK $GAIN Worth a look http://t.co/IN2QvnKhP1
Informer
19 Apr 14 04:11:35
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/XdzBweRvyb
Cecily Humphrey
19 Apr 14 03:35:40
$ANSS Seeking the next stock like $BEAM $CFX $YOD #liquidity http://t.co/buelywVRLy
GavinGreenberg
19 Apr 14 03:11:36
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/ZtdhQvP6nN
Stock Herald
19 Apr 14 02:13:08
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/flB1H36CJ2
Informer
19 Apr 14 01:14:16
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/XdzBweRvyb
AllyGMorrison
19 Apr 14 00:38:07
$BEAM IC inspection tool supplier posts over 10% rise in Q1 earnings http://t.co/3dgVTT1V9M
GavinGreenberg
19 Apr 14 00:12:34
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/ZtdhQvP6nN
AllyGMorrison
18 Apr 14 23:59:33
$BEAM Bourbon Brands Try to Grab Don Draper's Magic http://t.co/NMAQ2OQnbR
Stock Herald
18 Apr 14 23:12:34
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/flB1H36CJ2
Informer
18 Apr 14 22:12:35
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/XdzBweRvyb
GavinGreenberg
18 Apr 14 21:12:35
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/ZtdhQvP6nN
Kamren Martinez
18 Apr 14 20:59:42
$NSR Are you thinking of selling $BEAM $DBD $FEYE #moneymanagement http://t.co/gHKF7ISVqB
AllyGMorrison
18 Apr 14 20:59:05
$BEAM Eddie Lampert Buys Sears Hometown, Bill Ackman Continues to Sell Beam Inc. Holding http://t.co/2NcZtfrfHT
AllyGMorrison
18 Apr 14 20:48:04
$BEAM 2014 NYIAS: The 2015 Subaru Outback gives up its manual transmission http://t.co/vxKhummn64
Stock Herald
18 Apr 14 20:27:33
$BEAM: GuruFocus Real Time Picks of the Week http://t.co/Pveoipbf41
Stock Herald
18 Apr 14 20:11:34
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/flB1H36CJ2
Informer
18 Apr 14 19:23:04
$BEAM: Eddie Lampert Buys Sears Hometown, Bill Ackman Continues to Sell Beam ... http://t.co/7KlD1qJUuP
Informer
18 Apr 14 19:18:03
$BEAM: GuruFocus Real Time Picks of the Week http://t.co/lcnjB7MTwB
Informer
18 Apr 14 19:12:10
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/XdzBweRvyb
AllyGMorrison
18 Apr 14 18:58:03
$BEAM GuruFocus Real Time Picks of the Week http://t.co/rXxHGeysXA
GavinGreenberg
18 Apr 14 18:55:06
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/ZtdhQvP6nN
GavinGreenberg
18 Apr 14 18:24:04
$BEAM: BEAM INC Files SEC form 8-K, Change in Directors or Principal Officers http://t.co/QstgJHVlgP
GavinGreenberg
18 Apr 14 18:18:05
$BEAM: GuruFocus Real Time Picks of the Week http://t.co/yOvxxxXM79
GavinGreenberg
18 Apr 14 18:18:05
$BEAM: Eddie Lampert Buys Sears Hometown, Bill Ackman Continues to Sell Beam ... http://t.co/96dhobtqwL
GavinGreenberg
18 Apr 14 18:12:04
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/W4o2OpZY7y
StockNews24
18 Apr 14 18:06:10
$BEAM - GuruFocus Real Time Picks of the Week -> http://t.co/AaO2bgGJws #stock #stocks #stockaction
StockNews24
18 Apr 14 18:06:06
$BEAM - Eddie Lampert Buys Sears Hometown, Bill Ackman Continues to Sell Beam ... -> http://t.co/gAFPzNqavW #stock #stocks #stockaction
Svelteei
18 Apr 14 17:57:12
Should you buy $OXY $BBT $BEAM $RAX #economy http://t.co/ElvQbAaerf
Belbi Pasha
18 Apr 14 17:22:18
Beam Inc.'s CFO and two other executives to resign ahead of Suntory takeover $BEAM http://t.co/krxk436sZz
Stock Herald
18 Apr 14 17:12:06
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/nXzLDadCd2
Hugh Griffin
18 Apr 14 16:51:27
Great #Stock Newsletter on $BEAM $DLB $CREE $OPK #wallstreet http://t.co/EOJoVOFYG1
Informer
18 Apr 14 16:34:04
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/KMU7tjLWhV
Informer
18 Apr 14 16:18:33
$BEAM: BEAM INC Files SEC form 8-K, Change in Directors or Principal Officers http://t.co/IbaggRyInz
AllyGMorrison
18 Apr 14 16:14:33
$BEAM Quad-Cities Chamber to honor small businesses http://t.co/5RKHa7zGXa
Informer
18 Apr 14 16:12:35
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/Qf2Z6NZ3yB
AllyGMorrison
18 Apr 14 15:58:04
$BEAM Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/xgTGj1b8Nd
GavinGreenberg
18 Apr 14 15:54:34
$BEAM: BEAM INC Files SEC form 8-K, Change in Directors or Principal Officers http://t.co/QstgJHVlgP
AllyGMorrison
18 Apr 14 15:36:03
$BEAM Eddie Lampert Buys Sears Hometown, Bill Ackman Continues to Sell Beam Inc ... http://t.co/7G2nalyqo8
GavinGreenberg
18 Apr 14 15:11:09
$BEAM: BEAM INC Files SEC form 8-K, Change in Directors or Principal Officers http://t.co/Blf7qx7HkT
GavinGreenberg
18 Apr 14 15:06:36
$BEAM: [$$] Three Beam Executives to Resign Ahead of Suntory Takeover http://t.co/W4o2OpZY7y
				
				
By  +Follow January 13, 2014 4:19AM
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