Beam acquired by Suntory Holdings for $83.50/share in cash
- Co announced that they have entered into a definitive agreement under which Suntory will acquire all outstanding shares of Beam for $83.50 per share in cash or total consideration of approximately $16 bln, including the assumption of Beam's outstanding net debt.
- The transaction consideration represents a 25% premium to Beam's closing price of $66.97 on January 10, 2014; a 24% premium to the volume-weighted average share price over the last three months; and a multiple of more than 20 times Beam's EBITDA for the 12-month period ended September 30, 2013.
- The transaction, which has been unanimously approved by each company's board of directors, is expected to close in the second quarter of 2014, subject to Beam stockholders' approval, regulatory approvals and other customary closing conditions.
- "The attractive valuation which has been achieved for Beam stockholders is a result of the successful strategy and excellent execution by the worldwide Beam team...Indeed, Beam will have achieved a total shareholder return of 106%3 since Beam became a standalone spirits company in October of 2011."
- Suntory intends to fund the transaction through a combination of cash at hand and fully committed financing.