Brown-Forman Corporation has reached an agreement to sell its Southern Comfort and Tuaca liqueur brands to Sazerac for US$543.5 million.
Brown-Forman Chief Executive Officer Paul Varga said the decision to sell the brands “reflects the company’s evolving portfolio strategy and a continuation of its efforts to focus resources on its highest strategic priorities”.
“We’re proud of the work undertaken over the years by our employees and partners on behalf of Southern Comfort and Tuaca,” said Varga. “Both brands played important roles in the Brown-Forman success story, and we will have fond memories of the enjoyment they brought to consumers, our partners, and to Brown-Forman.”
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Tuaca (left) and Southern Comfort: Finding a new home at Sazerac |
Brown-Forman has marketed Southern Comfort since acquiring the brand in 1979. The company acquired Tuaca in two transactions, completing the purchase in 2002.
“We are very excited about the opportunity to acquire such iconic brands. Brown-Forman has done an excellent job of building both brands over the years and we are looking forward to many more years of successful brand building.” said Mark Brown, President & CEO of The Sazerac Company, a drinks group based in New Orleans.
The sale is expected to close by 1 March 2016 resulting in a one-time operating income gain for Brown-Forman of around US$475 million in fiscal year 2016. The transaction is subject to regulatory clearance in the USA and customary closing conditions.
