April 15 (Reuters) – U.S. spirits group Sazerac has offered to buy Jack Daniel’s maker Brown-Forman for about $15 billion, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The privately held company has offered Brown-Forman $32 a share, the report said. With this offer, Sazerac has emerged as an interloper in Pernod Ricard’s attempt to merge with Brown-Forman.
Rising costs from supply-chain disruptions and uncertainty over U.S. tariffs have in recent months pressured alcohol companies already facing a pullback in consumption from pandemic highs.
Sazerac declined to comment, while Brown-Forman and Pernod did not immediately respond to Reuters requests for comment.
Brown-Forman was already in talks with Pernod about a tie-up when Sazerac recently approached the Kentucky-based distiller with a rival bid. Analysts said Pernod’s portfolio and global reach make the French spirits maker the better fit.
A Pernod and Brown-Forman merger would create a stronger challenger to global spirits leader Diageo and give the combined group greater leverage in the key United States market.
Analysts said the deal 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.
Sazerac’s edge lies in its familiarity with Brown-Forman, forged through decades of ties in Louisville’s tight-knit bourbon industry. A combination of the two would also mean greater clout in negotiations with major U.S. distributors, industry M&A advisers have said.
Brown-Forman’s shares rose about 1% in afternoon trading.
Last month, Brown-Forman maintained its fiscal 2026 forecast amid challenges from a volatile and uncertain macroeconomic environment. It has also been taking a hit in key markets such as the U.S. due to sluggish sales.
New Orleans-based Sazerac has steadily broadened its portfolio over the years by snapping up popular liquor brands.
A decade ago, it bought brands including Southern Comfort and Tuaca from Brown-Forman, and Pernod Ricard’s Paddy whiskey. It followed that up in 2018 with the purchase of about 19 labels from industry giant Diageo.
Sazerac managed to get its hands on Svedka vodka in 2024 after Constellation Brands sold the brand to focus on its higher-margin businesses.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Pooja Desai)
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