Japanese drinks group Suntory has finalised its $16-billion acquisition of Jim Beam bourbon-maker Beam Inc, creating Beam Suntory Inc, the world’s third largest high-end spirits maker.

Even as the move would give the new firm a strong foothold in the US liquor market, the brewing and distilling company Suntory Holdings has reportedly been in talks to buy Coimbatore-based Imperial Spirits, as well as pick up a stake in Radico Khaitan, an Indian distiller.

This January, Suntory Holdings Ltd, based in Osaka, and US-based Beam Inc had announced a deal, whereby Suntory would acquire all the shares of Beam and take on its outstanding debt. The deal would make the new firm the third largest drinks group, behind Diageo and Pernod Ricard.

The new company intends to integrate the spirits business of Suntory Liquors Ltd before the end of this year, Beam Inc said in a statement. Beam Suntory aims to achieve growth in markets worldwide, by leveraging its combined portfolio of leading brands, and its strengthened global distribution network. The deal also ensures that Suntory would gain control over Teacher’s, India’s largest selling scotch whiskey brand. With leading brands like Jim Beam, Teacher’s, Laphroaig and Bowmore scotch whiskies, and Japanese whiskies like Yamazaki, Hakushu, Hibiki, and Kakubin, the acquisition is set to bring together several brands from both companies.

Combined sales of both groups were $4.6 billion in 2013.

Related Topics
comment COMMENT NOW