Allied Domecq agrees Pernod Ricard takeover
Allied Domecq is to recommend a £7.4bn takeover by Pernod Ricard.
The Allied board agreed the deal in advance of today's interim results announcement.
The French company is offering 670p a share for UK based Allied, owner of brands including Courvoisier, Beefeater gin, Tia Maria and Malibu.
Allied shareholders are being offered 545p in cash, and 0.0158 of a new Pernod Ricard Share for every Allied Domecq share.
Pernod is being backed in the deal by Fortune Brands of the US. The French company has agreed to sell brands including Canadian Club, Courvoisier, Maker's Mark and Sauza to Fortune for around £2.8bn.
Pernod Ricard will retain the rest of the Allied Domecqbusiness, including spirits brands and premium wines including Ballantine's, Beefeater, Kahlua, Malibu, Stolichnaya, Tia Maria, Montana, Mumm and Perrier Jouet.
Philip Bowman, chief executive said: "This is a very different business from the one I joined some six years ago. We have a substantially stronger portfolio with access to growth categories and markets, better margins, more efficient use of resources and of course significantly stronger cash flows.
'Our interim results announced today demonstrate our eleventh successive half-year of growth with constant currency earnings and interim dividend per share up by over ten percent. In the last five years, the market capitalisation has almost doubled, increasing by £3.6 bn.
He added: "The offer for the business from Pernod Ricardprovides Allied Domecq shareholders with the ability to crystallise value and an opportunity to continue to participate in the future success of many of our brands within the enlarged Pernod Ricard business."
Patrick Ricard, chairman and chief executive of Pernod Ricard, said: "I believe that Allied Domecq's magnificent portfolio of brands has a great future within our group. We at Pernod Ricard look forward to working with the employees of Allied Domecq to realise the strong potential that exists to grow our enlarged business."
Norm Wesley, chairman of Fortune Brands, said: "We see the purchase of these exceptional, complementary brands as an excellent high-return growth opportunity that will fill gaps in our portfolio and take our very profitable spirits and wine business to the next level."
