Pernod Ricard Completes Acquisition of Castle Brands
Pernod Ricard has finalized the acquisition of Castle Brands Inc., bringing the American spirits company under its full ownership. The transaction strengthens Pernod Ricard's presence in the US market.
Pernod Ricard announced the completion of its acquisition of Castle Brands Inc. on October 9, 2019. The transaction was executed through a cash tender offer followed by a short-form merger, making Castle Brands an indirect wholly owned subsidiary of the spirits and wine conglomerate.
The acquisition integrates Castle Brands' portfolio into Pernod Ricard's existing business. As a result of the merger, Castle Brands' common stock has ceased trading on the NYSE American. This move underscores Pernod Ricard's strategic focus on the United States, identified as a priority market for the company.
Alexandre Ricard, Chairman and Chief Executive Officer of Pernod Ricard, commented on the closing, highlighting the opportunity the acquisition presents in the world's largest spirits market. The offer price was set at $1.27 per share in cash, net of applicable withholding taxes.
The tender offer, which expired on October 8, 2019, saw approximately 89.52% of Castle Brands' outstanding shares tendered. All conditions for the offer were met, paving the way for the concurrent merger and subsequent delisting of Castle Brands' shares.