Fireball owner Sazerac has reached an agreement to acquire Germany-based spirits company Berentzen Group as it broadens its presence in Europe.
Sazerac will pay 5.55 euros per share, or about $6.31, in an agreement that would be 68% above the company's three-month weighted average price prior to Sept. 16. The deal, subject to shareholder approval, is expected to close at the end of the year and Sazerac will delist the company from the Frankfurt Stock Exchange, according to a press release
Berentzen Group is one of Germany's oldest spirit producers, with a more than 250-year history. The company operates in more than 60 countries and is best known for brands including Berentzen schnapps and Puschkin vodka. It also owns several nonalcoholic beverage and juice brands.
The partnership will allow Sazerac to broaden its capabilities in Europe, including manufacturing and distributing the Buffalo Trace maker’s own spirits products “with greater flexibility and pace,” Sazerac CEO Jake Wenz said in a statement.
The companies expect the deal to also broaden Berentzen’s existing portfolio and capabilities, while also boosting investments at the German spirits producer’s existing sites.
“The business combination will present the Berentzen Group with an excellent opportunity to consistently pursue its growth strategy and tap into further potential for value creation at a pace and on a scale that is only possible with a strong strategic partner in a challenging European market,” Oliver Schwegmann and Ralf Bruehoefner, members of the Berentzen Group’s Executive Board, said in a statement.
This is the second deal Sazerac has charted in Europe within the past year. Last month, the BuzzBallz owner bought U.K.-based canned cocktail brand Au Vodka. Over the past decade, it has also acquired U.K.-based Last Drop Distillers and Hawk’s Rock Distillery in Ireland.
Sazerac is aggressively expanding through acquisitions as it looks to grow despite a challenging market for alcohol producers. The bulk of Sazerac’s recent M&A activity has taken place in the U.S. and has particularly targeted brands of interest to younger consumers, including RTD brand Dirty Shirley and stakes in Kendall Jenner’s 818 Tequila and Alix Earle’s Sipmargs. Its deal making has also extended to distillery properties, with the spirits maker buying a group of whiskey facilities in Kentucky.
