Brown-Forman Rejects Sazerac’s $15 Billion Takeover Bid as Family Backs Independence

Brown-Forman, the maker of Jack Daniel’s Tennessee Whiskey, has confirmed that its board received an unsolicited takeover proposal from privately held spirits giant Sazerac but determined that the offer was “not actionable,” signaling little interest in pursuing the deal.

According to sources familiar with the matter, New Orleans-based Sazerac submitted a cash offer of $32 per share on May 1, valuing Brown-Forman at approximately $15 billion. The company reportedly followed up last week with a letter to Brown-Forman’s Class A shareholders, the majority of whom are members of the Brown family and several company directors, urging the board to discuss the proposal and its strategic benefits.

In the letter, Sazerac said it remains willing to improve the terms of its bid if meaningful discussions begin. The company also offered Class A shareholders the option to roll their holdings into the combined business, along with governance protections, improved liquidity, and a dividend exceeding Brown-Forman’s current payout.

Despite the proposal, Wolf Pen Branch, a group representing a majority of the Brown family’s Class A shares, reaffirmed its confidence in Brown-Forman’s long-term future. The group stated that Sazerac’s offer does not align with its vision for the company or its portfolio of premium spirits brands.

Sazerac, which owns more than 500 brands including Fireball, Southern Comfort, and Myers’s Rum, declined to comment on the matter. Brown-Forman, whose portfolio also includes Woodford Reserve bourbon and Chambord liqueur, did not immediately respond to requests for additional comment.

The takeover approach follows the collapse of merger discussions between Brown-Forman and French spirits producer Pernod Ricard in late April after both sides failed to reach mutually acceptable terms.

Because the Brown family has controlled Brown-Forman since 1870, any potential sale would require its approval, making family support a decisive factor in any acquisition attempt.

The development also comes shortly after Brown-Forman announced that President and CEO Lawson Whiting plans to retire once a successor is appointed, marking another significant transition for the iconic American spirits company.