Sazerac Buys Au Vodka for Over £300M, Expanding UK Presence
BFA sits 17% above its 52-week low of $23.01 on light trading volume (0.2× avg).
Summary
Sazerac, the privately held spirits company that made an unsolicited $32/share bid for Brown-Forman earlier this year, has completed its acquisition of UK-based Au Vodka for more than £300 million ($405 million). The deal strengthens Sazerac's UK market position and adds a fast-growing vodka and ready-to-drink brand to its portfolio of over 500 brands. While Brown-Forman is not a party to this transaction, the acquisition signals Sazerac's continued aggressive expansion and financial capacity, which is relevant given its rejected takeover approach for Brown-Forman. The timeline shows Brown-Forman's board rejected Sazerac's proposal in July, and this deal may indicate Sazerac's willingness to pursue other targets while its interest in Brown-Forman remains unresolved.
At the time of this announcement, BFA was trading at $26.86 on NYSE in the Trade & Services sector, with a market capitalization of approximately $12.2B. The 52-week trading range was $23.01 to $31.14. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.