Beam move off the radar for Pernod

Pernod Ricard has poured cold water on speculation it might make a move for Beam Global, saying big acquisitions will not be on its agenda until next summer at the earliest.

Chief executive Pierre Pringuet last week appeared to leave the door open for a move for the spirits business of Fortune Brands, but Pernod’s finance chief Gilles Bogaert told a London briefing yesterday that the company is instead focused on cutting debt to meet targets set for June 2012 and regaining its debt investment grade rating.

“Our priority is deleveraging,” Bogaert said. “Massive acquisitions short term are not on the agenda, but we are open to tactical moves.” He confirmed that with the current valuation of Beam Global sitting at almost US$9 billion, that would certainly count as a “massive” deal.

Fortune aims to spin off its home and security business on 3 October, and its spirits company, re-named Beam, will start trading on 4 October.

Analysts expect Beam to make earnings before interest, tax, depreciation and amortisation (EBITDA) of around $700 million in 2011, which on an average 12.5 times industry multiple makes the business worth nearly $9bn.

The spirits business, which owns Jim Beam and Maker’s Mark bourbons, Sauza Tequila and Courvoisier Cognac, may prove difficult for one company to buy due to anti-trust issues so speculation has focused on joint break-up bids.