Japanese whiskey maker Suntory Holdings Limited will acquire Beam Inc., the makers of Jim Beam and Maker's Mark bourbon, for $16 billion, marking the first major acquisition of 2014.
Suntory is offering Beam shareholders $83.50 a share in cash -- 25 percent more than the company's closing price on Friday. Factoring in debt, the deal is expected to close June 30 and will cost Suntory $16 billion.
Beam's current management team, including CEO Matthew J. Shattock, will continue to run the business.
Suntory was established in 1899 and created Japan's first whiskey in 1923. Founder Torii Shinjiro built the Yamazaki distillery and used the principles of scotch whiskey making to produce the whiskey. Yamazaki Japanese whisky, Bowmore Scotch and Midori liqueur are popular brands produced by the company.
Apart from selling Jim Beam and Maker’s Mark bourbons, Beam also sells Teacher’s and Laphroaig Scotch whiskies, as well as Canadian Club whisky and Courvoisier cognac.
Beam Inc. closed Monday at $83.42, up almost 25 precent from Friday's closing.
[Suntory Holdings Limited]