Sazerac, do you feel comfortable with $543.5 million? It appears you do…
Brown-Forman Corporation tells BourbonBlog.com that it has reached an agreement to sell its Tuaca and Southern Comfort (known for their “Whatever’s Comfortable” slogan). Brown-Forman has marketed Southern Comfort since acquiring the brand in 1979. The company acquired Tuaca in two transactions, completing the purchase in 2002.
The sale of these brands is expected to close by March 1, 2016 resulting in a one-time operating income gain for Brown-Forman of approximately $475 million in fiscal 2016.
To celebrate the sale, watch BourbonBlog.com ‘s video coverage of a Tuaca Drinks & Ink event in Denver with tattoo artist Corey Miller.
The transaction, which is subject to regulatory clearance in the U.S. and customary closing conditions, will be discussed in further detail during Brown-Forman’s March conference call following the issuance of its third quarter earnings release.
“We are very excited about the opportunity to acquire such iconic brands. Brown-Forman has done an excellent job of building both brands over the years and we are looking forward to many more years of successful brand building.” Mark Brown, President / CEO of the Sazerac Company.
Brown-Forman Chief Executive Officer Paul Varga says the decision to sell these brands reflects the company’s evolving portfolio strategy and a continuation of its efforts to focus resources on its highest strategic priorities. Brown-Forman has actively managed its portfolio over the last decade by developing, acquiring and divesting specific brands and categories with the aim of improving the growth and value creation prospects for its business.
“We’re proud of the work undertaken over the years by our employees and partners on behalf of Southern Comfort and Tuaca,” says Varga. “Both brands played important roles in the Brown-Forman success story, and we will have fond memories of the enjoyment they brought to consumers, our partners, and to Brown-Forman.”