US wine producer and distributor E&J Gallo has bought Japanese brewer Kirin Holdings’ Kentucky bourbon brand Four Roses, it said on Thursday.
The deal comes as the wider consumer goods sector sees large-scale mergers and acquisitions amid weak demand in some categories.
France’s Pernod Ricard and Jack Daniel’s owner Brown-Forman are in talks over a possible merger, the companies said last week.
Four Roses’ existing team will remain in place following the acquisition, including master distiller Brent Elliott.
Financial terms of the deal were not disclosed.
In February, Kirin said it expected the sale to be worth about $775 million (€671.97 million).
Four Roses
The Japanese brewer, which bought Four Roses in 2002, also owns a pharmaceuticals subsidiary called Kyowa Kirin.
Kirin was looking to sell Four Roses to pivot from the struggling spirits sector in Japan to its healthcare business, the Financial Times reported last year.
Kirin’s market capitalisation is JPY 2.135 trillion ($13.37 billion), according to data compiled by LSEG.
UBS Investment Bank acted as exclusive financial adviser to Kirin on the transaction, while E&J Gallo was advised by Jefferies.
Privately held Gallo is based in Modesto, California.
Britt West, chief commercial officer of Gallo, stated, “Four Roses is one of the most respected bourbons in the world – defined by heritage and craftsmanship – and Kirin was instrumental in re-establishing the brand as a premium straight whiskey in the US.”
“Gallo has more than five decades of expertise in spirits distillation, maturation, and brand building. We are committed to upholding Four Roses’ quality and building the brand as a cornerstone of our portfolio through increased consumer and trade engagement, innovation, and global expansion.”
News by Reuters, additional reporting by ESM.
AloJapan.com