Japan's Suntory is buying spirits maker Beam for $13.6B(Photo: Bruce Schreiner, AP)
(USA TODAY/AP) -- Shares of spirits maker Beam surged Monday after it said it has agreed to be bought by Japan's Suntory Holdings for about $13.6 billion.
Suntory will pay $83.50 a share for the maker of Jim Beam and Marker's Mark alcohol brands, which is a 25% premium to Beam's Friday closing price of $66.97. The companies put the deal's value at about $16 billion, including debt.
Beam's stock jumped 24% to $83.06 in morning trading.
Combined the company will have annual sales of about $4.3 billion.
"Together we will be a global leader in distilled spirits with the #3 position in premium spirits and a dynamic portfolio across key categories," said Beam CEO Matt Shattock. "With particular strength in Bourbon, Scotch, Canadian, Irish and Japanese whisky, the combined company will have unparalleled expertise and portfolio breadth in premium whisky, which is driving the fastest growth in Western spirits."
Suntory has a portfolio of spirits, with whiskies including Yamazaki and Hakushu as well as Midori liqueur and other beverages. It already distributes Beam's products in Japan. Beam distributes Suntory's products in Singapore and other Asian markets.
Suntory Chairman Nobutada Saji said in a statement that the acquisition will help Suntory further its global growth.
Both companies' boards unanimously approved the transaction, which is targeted to close in the second quarter.
Contributing: The Associated Press