Suntory Holdings To Buy Beam In $16 Bln Cash Deal - Quick Facts

(RTTNews) - Suntory Holdings Ltd. and Beam Inc. (BEAM) announced Monday that they have entered into a definitive agreement under which Suntory will acquire all outstanding shares of Beam for $83.50 per share in an all-cash deal of about $16 billion, including the assumption of Beam's outstanding net debt.

The companies noted that the deal creates the World's third largest premium spirits player with a portfolio of leading brands across key spirits categories and annual net sales of spirits products exceeding $4.3 billion.

The transaction consideration represents a 25% premium to Beam's closing price of $66.97 on January 10, and a 24% premium to the volume-weighted average share price over the last three months.

The transaction, which has been unanimously approved by each company's board of directors, is expected to close in the second quarter of 2014. The deal is subject to Beam stockholders' approval, regulatory approvals and other customary closing conditions.

Suntory and Beam already have a successful business relationship under which Suntory distributes Beam products in Japan and Beam distributes Suntory's products in Singapore and other Asian markets.

Suntory intends to fund the transaction through a combination of cash at hand and fully committed financing provided by The Bank of Tokyo-Mitsubishi UFJ.