Brown-Forman Closes Acquisition Of Casa Herradura For $776 Mln
Submitted by Tequila.net
January 19, 2007
(RTTNews) - Thursday, Brown-Forman Corp. (BFA) (BFB), and Grupo Industrial Herradura or Casa Herradura, announced that Brown-Forman has completed its acquisition of all the assets of the Mexican tequila company for $776 million. The purchase price was originally agreed to be $876 million, but it was amended by mutual agreement of the companies. The final price is subject to customary post-closing working capital adjustments.
Earlier the company had expected fiscal 2007 earnings per share to be reduced by $0.08 to $0.12. But now it expects fiscal 2007 earnings to be reduced by $0.14 - $0.18 per share, due to lower profitability of the business in Mexico, higher upfront transition costs, including the purchase of U.S. distributor inventory; and the effect of amortizing the buy-out of U.S. distribution rights for the Tequila Herradura brand over the next five years. These higher costs are anticipated to be partially offset by lower interest expense.
Brown-Forman Corporation is a diversified producer and marketer of fine quality consumer products, including Jack Daniel's, Southern Comfort, Finlandia Vodka, Canadian Mist, Fetzer and Bolla Wines, Korbel California Champagnes, and Hartmann Luggage.
BFA closed Thursday's regular trading session at $68.51, up $0.41 or 0.60%.