Japanese brewer and distiller Suntory said Monday it has reached a deal to buy Beam, the maker of bourbon brands such as Jim Beam and Maker’s Mark, in a cash deal worth roughly $16 billion, including the assumption of debt.
Osaka-based Suntory, which makes a range of alcoholic beverages that includes Yamazaki whiskey and Premium Malt’s beer, will pay $83.50 in cash for each Beam share, representing a premium of 25 percent over the Deerfield, Ill.–based target’s Friday closing price. The equity value of the deal is $13.6 billion, while Suntory will also assume more than $2 billion in debt, according to Bloomberg. The deal is expected to close in the second quarter of 2014—pending regulatory approvals—at which point Beam’s current management team, including CEO Matt Shattock, will continue to run the business from the company’s U.S. headquarters.
