The company, founded in 2014 by a $16 billion merger between Suntory and Beam, announced today that it has reached a “final agreement” on the sale of its brandy and sherry shares in Jerez-based Emperador Inc., saying they would be “of greater value” to another company. Beyond the practical challenges, a climate of mistrust developed when two parts of the initial post-merger plan were abandoned. When the deal was first discussed, Japanese website Beam announced that its shares would be listed in the United States again. Beam executives also expected Suntory to sell its Japanese whiskey in the U.S. market after the deal. The shortage of supply meant that there was little Japanese whisky that Suntory and Beam could sell worldwide after the merger. Given the time it takes for Japanese whisky to age, Suntory chief executive Takeshi Niinami says it will take more than 15 years to completely solve the problem. OSAKA, JAPAN and DEERFIELD, ILLINOIS – JANUARY 13, 2014 – Suntory Holdings Limited and Beam Inc. (NYSE: BEAM) announced today that they have entered into a final agreement under which Suntory will acquire all remaining shares of Beam for $83.50 per share in cash, for a total of approximately $16 billion, including the repurchase of Beam`s outstanding net debt. the counterpayment corresponds to a 25% premium on Beam`s closing price of $66.97 on January 10, 2014; a premium of 24% on the volume weighted average price of the last three months; and more than 20 times Beam`s EBITDA1 for the 12-month period to September 30, 2013.
The agreement includes the Fundador, Harveys, Terry and Tres Cepas brands, as well as the production sites in Jerez and Tomelloso, Spain. Suntory`s board of directors agreed in the spring of 2014 that it would trigger Beam`s IPO within three years of the merger, with the product forming the backbone of the group`s debt repayment plans, according to a person with knowledge of the decision. . . .