Brown-Forman, the company behind the world-famous Jack Daniel’s whiskey brand, has reportedly rejected a $15 billion takeover offer from rival spirits producer Sazerac.
According to sources familiar with the matter, Sazerac offered $32 per share in cash in a bid submitted earlier this year. Despite the premium offer, Brown-Forman declined the proposal as the company continues navigating a challenging period for the global alcohol industry.
The development comes only weeks after Brown-Forman’s merger discussions with French liquor giant Pernod Ricard broke down following disagreements over deal terms.
Brown-Forman shares closed at $26.56 on Tuesday, significantly below Sazerac’s proposed offer price.
Sazerac, one of America’s largest privately owned spirits companies, owns more than 500 beverage brands, including Buffalo Trace bourbon and Fireball whisky.
The company reportedly lined up financial backing from Wells Fargo and Apollo Global Management to support the proposed acquisition.
Sources say the deal would have allowed Brown-Forman’s Class A shareholders to either receive cash payments or roll over their shares into the combined company.
However, the Brown family — which controls Brown-Forman through voting shares — reportedly preferred a potential transaction with Pernod Ricard because it would have enabled them to maintain influence in the business after the merger.
Pernod Ricard, known for brands such as Jameson Irish Whiskey, Absolut Vodka, and Malibu Rum, had explored a largely stock-based merger structure that insiders described as closer to a “merger of equals.”
By contrast, Sazerac’s proposal relied more heavily on cash financing and would likely have resulted in the Brown family surrendering control of the company.
The failed negotiations highlight the growing pressure across the global spirits industry, where declining alcohol consumption and cautious consumer spending continue to impact sales volumes.
Industry analysts say major beverage companies are increasingly exploring mergers and acquisitions to improve scale, strengthen market share, and gain better leverage with distributors.
If completed, a merger between Brown-Forman and Sazerac would have created a dominant American whiskey powerhouse controlling roughly 30% of the U.S. whiskey market.
The combined company would also have gained stronger negotiating power across retail and distribution channels in the highly competitive spirits sector.
