Pernod Ricard acquires Castle Brands for US$223m

Drinks giant Pernod Ricard has entered into an agreement to acquire alcohol manufacturer and marketer Castle Brands for approximately US$223 million.

Under the terms of the merger, Castle Brands shareholders will receive US$1.27 in cash for each share of Castle Brands stock they own.

As part of the deal, Pernod will add drinks brands including Jefferson’s Bourbon, Goslings rum, Brady’s Irish Cream, The Arran single malt Scotch and Clontarf Irish whiskey to its portfolio.

In its full-year results published in June, Castle Brands saw its net sales rise to US$95.8m, boosted by the growth of Jefferson’s Bourbon.

“Through this acquisition we welcome this great brand portfolio, in particular, Jefferson’s Bourbon, to the Pernod family. Bourbon is a key category in the US, which is our single most important market,” said Pernod Ricard’s CEO, Alexandre Ricard.

“This deal aligns well with our consumer-centric strategy to offer the broadest line-up of high-quality premium brands. As with our American whiskies Smooth Ambler, Rabbit Hole and TX, we would provide Jefferson’s a strong route to market and secure its long-term development, while remaining true to its authentic and innovative character,” Ricard added.

Castle Brands CEO, Richard J. Lampen, added: “We are very pleased to reach an agreement with Pernod Ricard, which is the result of months of planning and deliberation by our board of directors. We are confident that this transaction will deliver immediate and substantial cash value to our shareholders.”

Just this month Pernod secured a deal to acquire Texas-based Firestone & Robertson Distilling Co, producer of TX whiskey and Bourbon. The Castle Brands merger is expected to close in the fourth quarter of 2019.