Sazerac Offers $15 Billion for Brown-Forman

Sazerac has offered about $15 billion to buy Brown-Forman, the maker of Jack Daniel’s, according to a source familiar with the matter, in a move that could disrupt Pernod Ricard’s effort to strike a deal with the Kentucky distiller and deepen the consolidation already reshaping the global spirits business.

The privately held U.S. company proposed paying $32 a share for Brown-Forman, the source said on Wednesday. Brown-Forman shares closed at $29.57, up about 1%, still below Sazerac’s offer price. That gap suggested investors were weighing the obstacles to any transaction, including the Brown family’s controlling stake in the company, which has run the business since 1870.

The bid comes as spirits makers face weaker demand after the pandemic-era boom, along with supply-chain disruptions and uncertainty over U.S. tariffs. Those pressures have pushed companies to look for scale, lower costs and stronger bargaining power with distributors and retailers.

Sazerac declined to comment. Brown-Forman and Pernod Ricard did not immediately respond to requests for comment.

Brown-Forman had already been in talks with Pernod Ricard about a possible combination when Sazerac approached it with a rival offer, according to the source. Analysts have said a deal with Pernod could take the form of a share swap, which might allow the Brown family to keep some influence over the company. A more traditional cash offer from Sazerac would be harder for the family to accept if it meant giving up control outright.

The French spirits group has been viewed by some analysts as a better strategic fit because of its broader portfolio and international reach. A merger between Pernod Ricard and Brown-Forman would create a larger competitor to Diageo, the world’s biggest spirits company, and could give the combined business more leverage in the United States, one of the most important markets for premium whiskey and other spirits.

Sazerac’s advantage is its long familiarity with Brown-Forman through Louisville’s bourbon industry, where both companies have operated for decades. A combination would also give Sazerac more clout in negotiations with major U.S. distributors, advisers have said.

Brown-Forman last month kept its fiscal 2026 forecast unchanged even as it faced what it called a volatile and uncertain macroeconomic environment. The company has also been under pressure in key markets, including the United States, where sales have slowed.

New Orleans-based Sazerac has spent years expanding its portfolio through acquisitions. About a decade ago, it bought brands including Southern Comfort and Tuaca from Brown-Forman, as well as Paddy whiskey from Pernod Ricard. In 2018, it acquired about 19 labels from Diageo. More recently, it bought Svedka vodka in 2024 after Constellation Brands sold the brand to focus on higher-margin businesses.

The Wall Street Journal first reported Sazerac’s bid.