Pernod Ricard to Acquire Castle Brands for $223 Million

Pernod Ricard announced on August 28, 2019, that it will acquire Castle Brands for approximately $223 million. The transaction includes Castle Brands' outstanding common stock, plus the assumption of debt, and is designed to enhance Pernod Ricard's presence in the critical U.S. market.

The acquisition brings a portfolio of brands, notably Jefferson's bourbon whiskey, under the Pernod Ricard umbrella. Alexandre Ricard, Chairman and CEO of Pernod Ricard, stated the deal aligns with the company's consumer-centric strategy to offer a broad range of premium brands and will provide Jefferson's with a strong route to market.

Castle Brands shareholders will receive $1.27 in cash per share, representing a significant premium of 92% over the previous day's closing price and 109% over the 30-day average trading price. Richard J. Lampen, CEO of Castle Brands, noted that the transaction delivers substantial immediate cash value to shareholders.

The deal is structured as a tender offer, which is expected to commence shortly, followed by a merger. The acquisition is anticipated to close in the fourth quarter of 2019, subject to customary closing conditions, including regulatory approvals. Pernod Ricard has previously invested in American whiskey brands, including Smooth Ambler, Rabbit Hole, and TX.