Brown-Forman has agreed to sell both its Southern Comfort and Tuaca brands to Sazerac for £380m (USD $543.5m).
Brown-Forman CEO Paul Varga said the company had decided to sell to focus resources on its ‘highest strategic priorities’. He added that Brown-Forman was committed to its goal of ‘value creation’.
Southern Comfort was first acquired by Brown-Forman in 1979, with Tuaca joining the portfolio in 2002.
'We’re proud of the work undertaken over the years by our employees and partners on behalf of Southern Comfort and Tuaca,' he said. 'Both brands played important roles in the Brown-Forman success story, and we will have fond memories of the enjoyment they brought to consumers, our partners, and to Brown-Forman.'
Mark Brown, president and CEO of the Sazerac Company said: 'We are very excited about the opportunity to acquire such iconic brands. Brown-Forman has done an excellent job of building both brands over the years and we are looking forward to many more years of successful brand building.'
The deal is expected to close by 1 March subject to regulatory clearance, resulting in a one-time operating income gain for Brown-Forman of approximately £331m (USD $475m).