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Brown-Forman rebuffs Sazerac buyout bid twice, shares trade below offer

Sazerac’s all-cash $15 billion proposal offered about $32 per share, but BF.B closed at $28.43 on Aug. 5.

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Sazerac made two buyout attempts for Brown-Forman Corp., pitching an approximately $15 billion all-cash deal that valued the spirits company at about $32 per share, but Brown-Forman’s controlling Class A shareholder group rejected the offer first through the board and then after a renewed approach to Class A shareholders in July, according to MarketBeat Ratings.

The deal stalled because the Wolf Pen Branch, a group of Brown family members that controls over 50% of Brown-Forman’s Class A voting stock, must approve any change of control transaction. In its explanation, the group said it concluded the proposal did not align with its vision for Brown-Forman’s future, citing the brands, people, and culture.

MarketBeat Ratings also noted that the family was not broadly opposed to selling, pointing to Brown-Forman’s prior merger talks with Pernod Ricard in 2026 that ended in late April before Sazerac made its initial offer. Sazerac also signaled the $32-per-share proposal was not its final and best, saying it would be open to more favorable terms if Brown-Forman engaged in discussions, which did not happen.

Adding uncertainty, Brown-Forman’s CEO Lawson Whiting recently announced his retirement after 30 years with the company, and the company is still searching for a successor. MarketBeat Ratings said the leadership transition could be a factor in how the controlling shareholder group is thinking as the takeover remains dead, at least for now.

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