Jack Daniel’s maker Brown-Forman favors Pernod Ricard bid over Sazerac, source says

By Echo Wang and Abigail Summerville

April 20 (Reuters) – The family that controls Jack Daniel’s maker Brown-Forman favors a potential sale to French distiller Pernod Ricard over a rival proposal from American spirits group Sazerac, a person familiar with the matter told Reuters on Monday.

The family views Pernod as the more prestigious acquirer, with a portfolio of stronger and more recognizable brands, according to the person, who asked not to be identified while discussing private deliberations.

The proposed terms, which combine cash and stock, would also allow the family to retain a meaningful stake and some degree of influence in the combined company — an upside they believe outweighs what a deal with Sazerac would offer, the source said.

Earlier this month, Sazerac emerged as a fresh bidder for Brown-Forman after Pernod said in March it was in talks with the American spirits maker over a possible merger.

The Pernod bid being contemplated would be 80% stock and 20% cash, although it was subject to change, another source told Reuters.

Pernod, Brown-Forman and Sazerac have all declined to comment on Reuters’ requests.

(Reporting by Echo Wang in New York and Sanskriti Shekhar in Bengaluru; Editing by Shilpi Majumdar)