The family that controls Jack Daniel’s maker Brown-Forman favours a potential sale to French distiller Pernod Ricard over a rival proposal from American spirits group Sazerac, a person familiar with the matter has told Reuters.
The family views Pernod as the more prestigious acquirer, with a portfolio of stronger and more recognisable brands, according to the person, who asked not to be identified while discussing private deliberations.
Sazerac, which houses brands such as Corazon tequila and Svedka vodka, emerged as a fresh bidder for Brown-Forman earlier this month, after Pernod said in March it was in talks about a possible merger, which would create the world’s second biggest spirits maker by sales behind Irish Distillers company Diageo.
The proposed terms, which combine cash and stock, would also allow the family to retain a meaningful stake and some degree of influence in the combined company, the source said.
The Pernod bid being contemplated would be 80% stock and 20% cash, although it was subject to change, another source told Reuters.
Sazerac, controlled by the Goldring family, has offered Brown-Forman about $15 billion, or $32 per share, a source familiar with the matter said last week.
Unlike Sazerac’s more traditional buyout offer, analysts have said the deal with Pernod could involve a share swap, which would allow the Brown family to preserve some control over the iconic bourbon maker it has run since 1870.
Pernod, Brown-Forman and Sazerac have all declined to comment.
