Chadbourne Represented Jim Beam and Fortune Brands In Acquisition of Cruzan Rum from Pernod Ricard
August 29, 2008
Chadbourne & Parke LLP represented Fortune Brands and its Beam Global Spirits & Wine subsidiary in the acquisition of Cruzan Rum from V&S Vin & Sprit. V&S was recently acquired from Pernod Ricard.
Under terms of the deal, announced on August 28, Beam will pay $100 million for Cruzan Rum, the fastest growing rum brand in the U.S.
Beam will also receive $230 million for early termination of its joint distribution arrangement for distribution in the U.S. of Absolut vodka and other V&S brands. The joint distribution agreement had been scheduled to remain in place through February 2012.
Working for Chadbourne on the deal were partners Edward Smith, Bill Cavanagh and George Zeitlin and associate Jim Mathewson.
Cruzan is the fifth largest rum brand in the U.S. and generated worldwide net sales of approximately $50 million in 2007 on volume of approximately 750,000 cases.
The acquisition of Cruzan is subject to customary regulatory approvals and is expected to close within the next month.