Brown-Forman Rejects Another Offer from Sazerac

Brown-Forman Corp. closed the door to Sazerac Co. and any other would-be acquirer with a simple statement in which Wolf Pen Branch, "a collection of Brown family members representing the majority of Brown-Forman Class A shares," stated its opposition to a sale.

Brown-Forman has a two-class share structure. Class A shares are the only shares with voting rights, so if Wolf Pen Branch says its not interested in a sale, there won't be a sale. Brown-Forman's board dutifully followed soon thereafter formally rejecting Sazerac's offer. Neither company disclosed any proposed terms.

Marshall Farrer, Brown-Forman board chair, said:

“The company remains focused on executing its strategic plan, including expanding its geographic footprint, building brands that resonate with consumers, and enhancing operational efficiency, while continuing to explore additional opportunities to create sustained value for all shareholders.

“We are excited about what lies ahead, including the next chapter of leadership.”

A spokesman for Wolf Pen Branch added:

“As fourth-, fifth- and sixth-generation shareholders of Brown-Forman, we care deeply about the company … . We are confident in the strength and competitive position of the business, and believe the company is well-positioned to deliver long-term value for all shareholders.

“We have concluded that Sazerac’s proposal does not align with this vision for Brown-Forman’s future.”

There wasn't any comment from Sazerac, which owns Buffalo Trace Distillery and a number of spirits brands. Sazerac is privately owned by William Goldring and family. It operates nine distilleries, has about 2,000 employees and is in 112 countries. It's annual about $1 billion. It has about 300 brands.