US drinks group Sazerac to snap up Germany's Berentzen, shares surge

(Sharecast News) - Shares in Berentzen-Gruppe soared on Monday after the German schnapps maker agreed to be taken over by American spirits group Sazerac. Privately-owned Sazerac - whose brands range from Southern Comfort and Paddy's Irish Whiskey to pre-mixed Buzzballz cocktails - is offering €5.55 per share in cash for its German rival, a 68% premium.

Both the supervising and executive board backed the offer, calling it an "outstanding opportunity".

In a joint statement, Oliver Schwegmann and Ralf Bruehoefner, members of the executive board, said: "A high and steady rate of growth is of the utmost importance for achieving our strategic business objectives. The areas of innovative strength, sales capabilities and internationalisation play a particularly crucial role in this regard. These are precisely the area which Sazerac, as a globally positioned, financially strong partner, can make a real difference."

Jake Wenz, Sazerac chief executive, added: "We are confident this business combination will be beneficial for both sides, enabling us to manufacture and distribute spirts products for the whole of Europe and beyond with greater flexibility and pace."

As at 1030 BST, Berentzen's Frankfurt-listed shares had rocketed 21% to €5.50. Once the deal completes - estimated to be in the fourth quarter - the company will delist. Founded 268 years ago, Berentzen made its market debut in 1994.

Sazerac, which was founded in 1850 in New Orleans, is now in the fourth generation of family ownership.