DIAEGO AND PERNOD RICARD ACQUIRE SEAGRAM SPIRITS AND WINE
By Adnews Staff
Diageo plc, based in London, England, and Pernod Ricard, based in Paris, are acquiring the spirits and wine business of The Seagram Company Ltd. for US$8.15 billion. Diageo will contribute $5.0 billion towards the purchase price with the remaining $3.15 billion being contributed by Pernod Ricard. The two will split the Seagram portfolio, each retaining key businesses. Diageo obtains Crown Royal and VO Canadian whiskies, Captain Morgan rum and 7 Crown American whiskey, in addition to the Sterling Vineyards wine business. Diageo also acquires local brands Cacique rum in Venezuela and Spain, Windsor Premier Scotch whisky in Korea and Myers rum in the U.S. Pernod Ricard acquires the Chivas Regal, Glen Grant, Royal Salute and Glenlivet whiskies as well as Martell Cognac and Seagram's Extra Dry gin. Pernod Ricard also acquires several brands in Latin America, Asia and Europe, in addition to Seagram's Scotch whisky manufacturing and bottling facilities in Scotland. The two will work together to dispose of the remaining Seagram brands.