Brown-Forman to Sell Southern Comfort and Tuaca Brands For $544 Million
Brown-Forman Corporation, the US-based international spirits group, has agreed to sell its Southern Comfort and Tuaca trademarks to Sazerac, one of New Orleans’ oldest family owned, privately held companies, for $543.5 million. The decision to sell these brands reflects Brown-Forman’s evolving portfolio strategy and a continuation of its efforts to focus resources on its highest strategic priorities. Brown-Forman has actively managed its portfolio over the last decade by developing, acquiring and divesting specific brands and categories with the aim of improving the growth and value creation prospects for its business.
Brown-Forman has marketed Southern Comfort since acquiring the brand in 1979. The company acquired Tuaca in two transactions, completing the purchase in 2002. The sale of these brands is expected to close by March 1, 2016 resulting in a one-time operating income gain for Brown-Forman of approximately $475 million in fiscal 2016. The transaction is subject to regulatory clearance in the US and customary closing conditions.
