The bourbon industry held up their glasses to the Japanese company, Suntory, in its acquisition of Beam on Monday. Suntory, known for producing Japan’s first whiskey, holds an assertive corporate slogan, “Yatte Minashar,” which translates to, “Go for it.” Suntory plans to go for it in the year 2014, establishing itself as the third largest distiller in the world with today’s newest acquisition.
Suntory, a privately owned Japanese food and beverage producer, seized a largely attractive target for acquiring on the market in Beam. The deal amounts to $13.6 billion for Beam. Shares of Beam climbed 24 percent at midday amounting to more than $83 on Monday. Pending approval by Beam’s shareholders, the deal is expected to close by June 30.
Suntory recently acquired the Lucozade and Ribena soft drink brands from Glaxo. With the acquisition of Beam, Suntory establishes itself behind distiller giants Diageo and Pernod, and ahead of Brown-Foreman.
“Looking at the rapid growth we’ve seen in bourbon over the recent years, Beam is doing good job seizing the moment, striking while the iron is hot,” said John Faucher, JP Morgan analyst. “It’s a good deal for Beam shareholders.”