The controlling family behind Jack Daniel’s producer Brown-Forman reportedly prefers selling their company to French spirits giant Pernod Ricard rather than American competitor Sazerac, according to a source with knowledge of the discussions who spoke to Reuters on Monday.
The family considers Pernod the more prestigious buyer, citing the French company’s collection of superior and well-known brands, the source revealed. The individual requested anonymity due to the confidential nature of the negotiations.
According to the source, the proposed deal structure combining cash and stock would enable the family to maintain a significant ownership position and continue having influence within the merged organization. These benefits are seen as more valuable than what Sazerac’s offer would provide.
Sazerac entered the bidding competition earlier this month as a new contender for Brown-Forman, following Pernod’s March announcement that it was engaged in merger discussions with the American whiskey producer.
A second source informed Reuters that Pernod’s current proposal consists of 80% stock and 20% cash, though these terms could be modified during negotiations.
All three companies – Pernod, Brown-Forman, and Sazerac – have refused to provide comments when contacted by Reuters regarding the potential acquisition.
