Brown-Forman Favoring Potential Sale To Pernod Ricard Over Sazerac

The controlling Brown family behind Brown-Forman Corp have reportedly favored a "merger of equals" with French group Pernod Ricard, currently getting ahead of a previous $15 billion takeover bid from Sazerac.

While all three parties have declined to comment publicly on current negotiations, rumors suggest the Pernod Ricard deal would be structured as an 80% share exchange with the remainder in cash.

The Brown family reportedly prefers Pernod Ricard due to its status as a fellow family-controlled entity with a superior global brand portfolio and distribution network, which they believe will yield greater long-term cost efficiencies than a deal with Sazerac.

Furthermore, the proposed partial share exchange with the French group would allow the Browns to retain a significant stake and maintain influence within the newly merged company—a stark contrast to Sazerac’s proposal for a total takeover.

This arrangement is reportedly designed to provide Brown-Forman shareholders with a premium over the stock price at the time of Pernod Ricard’s initial approach.

Sazerac, controlled by the Goldring family, had previously launched a $15 billion takeover bid for Brown-Forman. Valuing the company at $32 per share, the bourbon producer has a market capitalization of $13.47 billion, while Pernod Ricard boasts a larger valuation of €17 billion ($20.01 billion).

Brown-Forman has been owned and controlled by the Brown family since its founding in 1870, and considers in its portfolio not only Jack Daniel’s but also brands such as Woodford Reserve, Old Forester and Herradura.

The company employs roughly 5,000 people globally with products in more than 170 countries.

The potential deal arrives at a time when global spirits producers grapple with mounting pressure from cooling consumption trends, persistent cost inflation, and shifting consumer preferences.

Traditional spirits demand has softened as younger consumers pivot toward moderation, RTDs, and non-alcoholic alternatives. Simultaneously, producers are battling rising input costs, inventory imbalances, and volatility from trade tariffs.

Kanpai!

88 Bamboo Editorial Team