The offer values Berentzen at a premium to its most recent market price and marks the latest move by the privately held Louisville, Kentucky-based spirits maker to broaden its portfolio through acquisitions.
Berentzen confirmed on Thursday that it was in discussions with Sazerac over a potential takeover. The German company, known for its schnapps and other beverage brands, subsequently received the formal offer from the US spirits producer.
Sazerac said the proposed acquisition is expected to be completed during the fourth quarter, subject to the necessary conditions being met. Following completion of the transaction, Berentzen is expected to be delisted from the stock market.
Berentzen shares closed at €4.53 on Friday, meaning Sazerac’s €5.55-per-share offer represents a premium of about 22.5% over the closing price.
The proposed acquisition fits with Sazerac’s broader strategy of expanding its international portfolio by purchasing emerging brands as well as established labels that larger beverage conglomerates may be looking to divest.
Sazerac, which owns a wide range of spirits brands and operates in markets around the world, has increasingly focused on acquisitions as a way to strengthen its portfolio beyond the US market.
For Berentzen, the proposed deal would bring the German beverage producer under the ownership of one of the world’s major privately held spirits companies. The support of both its executive and supervisory boards signals management and oversight backing for the transaction.
If completed, the acquisition would mark a significant change in Berentzen’s ownership structure and would ultimately remove the company from public trading.
The deal remains subject to completion of the takeover process and other applicable conditions, with Sazerac targeting the fourth quarter for closing.