Suntory Time for Beam?

[OscarV]

Every company in the world wants to "get bought". Finding someone willing to pay asking price is what prevents it from happening.

No not every company.

Suntory for example does not want to get bought.

Suntory Whiskey will remain family owned and not on the market.

[fishnbowljoe]

Maker's expansion? :skep: They have been expanding. They've had a second still for a long time. MM rotates the usage of it's two stills IIRC. There is also a third still (?), that may or may not be rotated in usage with their other two. The same also holds true with their stainless steel fermenters. Besides the cyprus fermenters that you see on their tours, MM also has some of the stainless steel variety. Whether or not they are, or have been used recently is anyone's guess. MM has also built numerous new warehouses in the last few years. There's a distinct possibility that they actually might not have to rent rickhouse space from HH in Deatsville now, or at least possibly in the not too distant future. As for the pics, they are from 2009. IIRC, MM has built at least 5-7 more new rickhouses since that time. Maybe more.

Cheers! Joe

[dementedavenger]

I own a few hundred shares of Beam. I suppose that unless I sell them before then, my shares will be bought out by Suntory when the deal goes through. I had thought that maybe I'd get Suntory shares as payment. Based on dementedavenger's info, that appears impossible. So I'm looking at some capital gains this year. There are worse things. . . .

It's a cash-for-stock deal so you'll get cash when the deal closes.

[bin31z]

Well, Suntory makes some excellent whiskies, so hopefully they can help Beam out some. Man, people are being so nasty on Maker's Mark FB page. Can't believe what I'm seeing.

[bin31z]

Yes, I was surprised by this as well. Living in liberal California, I don't see too much of this xenophobia but there are alot of "patriotic" Americans that will go on and on about this pearl harbor this and jap crap that nonsense. I am as patriotic as the next man and I love it when things are made in the usa but when people that are probably driving toyotas and wearing stuff all made in china are complaining about some corporate decision that won't affect their lives at all, it is a little ridiculous. People talking about...its ok when Beam was owned by the British because they help us in the Middle East wars, where was the japanese? Huh?

What gets me as an Australian reading the FB pages of MM and other Bourbon producers is the amount of people talking about boycotting the brand and how its disgusting to sell to Japanese. Its a classic knee jerk reaction that is flamed by native pride chest beating. I am all for having national pride in your country and what you produce, as we have gone through similar things in Australia with American companies taking over our beloved international recognised brands. But people need to look at the bigger picture. Sure, profits are going to go overseas and while its not ideal, least the product is still being made and produced in America. How many other industries have that benefit? By people stating they will boycott the brands, are just going to hurt local workers.

[squire]

Makers did a major expansion in the mid 90s essentially doubling their capacity by constructing a second, modern distillery behind the historic place that's open for tours. When Beam bought the place in 2005 the plan was in place to construct a third distillery which would increase production by 50% more. Some steps were taken, water supply increased by heightening the dam on the reservoir, another warehouse or two under construction, but the major ground breaking work on the new facility delayed with occasional vague comments that it would begin 'soon'.

If the deal is approved it will be interesting to see if Suntory dusts off those plans.

[callmeox]

Many of the financial articles on the deal provide info on who wanted the sale. Seems there was a major hedge fund investor who was looking to maximize his stake in Beam and he got his wish.

Google is your friend in this instance.

[portwood]

No not every company.

Suntory for example does not want to get bought.

Edited January 15, 2014 by portwood

[smokinjoe]

Yes, every company.

For the owner of an asset, everything has a price. The only reason most things (including companies) don't sell is because there is no buyer willing to pay what it would take for the seller to accept.

You put enough zeros on an offer sheet and the owner WILL accept!

[bin31z]

For a publicly trade company with a Board of Director and stockholders. If another company offers to buy you for more than book value (including estimated value on intangible assets), the board has to be very careful about not accepting such an offer and provide very valid reasons behind their decision. They can easily be sued by stockholder for corporate negligence if their stocks somehow drops after refusing an offer to sell for more than they are worth. Basically, when you are a publicly trade corporation, the feelings of board of directors, ceo, cfo etc has no play whatsoever on their decision making, it is all about profit. The "beauty" of capitalism.

I dunno, on this...As to selling, "want" and "willing" are quite different. But yes, everything/everyone has a price...probably.

[smokinjoe]

For a publicly trade company with a Board of Director and stockholders. If another company offers to buy you for more than book value (including estimated value on intangible assets), the board has to be very careful about not accepting such an offer and provide very valid reasons behind their decision. They can easily be sued by stockholder for corporate negligence if their stocks somehow drops after refusing an offer to sell for more than they are worth. Basically, when you are a publicly trade corporation, the feelings of board of directors, ceo, cfo etc has no play whatsoever on their decision making, it is all about profit. The "beauty" of capitalism.

[MyOldKyDram]

Worse than foreign ownership? Pandering to fear of foreign ownership. BT is playing to the xenophobic on its fb page. Not a good look IMO.

[weller_tex]

Yes, I was surprised by this as well. Living in liberal California, I don't see too much of this xenophobia but there are alot of "patriotic" Americans that will go on and on about this pearl harbor this and jap crap that nonsense. I am as patriotic as the next man and I love it when things are made in the usa but when people that are probably driving toyotas and wearing stuff all made in china are complaining about some corporate decision that won't affect their lives at all, it is a little ridiculous. People talking about...its ok when Beam was owned by the British because they help us in the Middle East wars, where was the japanese? Huh?

So liberals and Californians are saintly, huh? This thread is headed towards P&C. I don't agree at all with what was written on MM's FB page..but let's watch the generalizations....there are many fine, politically conservative folks (Southerners to boot) that would not agree with what was written on the FB page..

[HighInTheMtns]

Worse than foreign ownership? Pandering to fear of foreign ownership. BT is playing to the xenophobic on its fb page. Not a good look IMO.

Well, looks like we put a quick end to that.

[ChainWhip]

I can't say that the reaction is surprising but I'm also very disappointed in my fellow Americans

[Brisko]

Something else that just occurred to me: Suntory owns Bowmore, and with this purchase they'd pick up Laphroaig.

[Josh]

Something else that just occurred to me: Suntory owns Bowmore, and with this purchase they'd pick up Laphroaig.

Yep. That gives them 2 distilleries on Islay, same number as Diageo.

[bin31z]

So liberals and Californians are saintly, huh? This thread is headed towards P&C. I don't agree at all with what was written on MM's FB page..but let's watch the generalizations....there are many fine, politically conservative folks (Southerners to boot) that would not agree with what was written on the FB page..

Not making generalizations. I am not liberal at all but being liberal or conservative or state of residence has nothing to do with being racist or xenophobic.

Sent from my SCH-I535 using Tapatalk

[squire]

Also Canadian Club, Teachers and Cooley Irish Distillers.

[OscarV]

Yes, every company.

For the owner of an asset, everything has a price. The only reason most things (including companies) don't sell is because there is no buyer willing to pay what it would take for the seller to accept.

You put enough zeros on an offer sheet and the owner WILL accept!

Say something is "worth" $100. At that price you would have many offers. However, the owner doesn't want to sell for that price. If someone shows up and offers $200 the owner may still refuse. How about $500? $700? $1000? At some point the offer is "so good" the owner can't refuse.

No, there are some that want to build a company.

The typical American CEO wants to rape a company.

I am very excited about the Japanese buying Beam/MM because I am sure they want to build something for the future.

See your thing if it makes money than it's good, my thing is if it makes good bourbon than it is good.

But then again I'm an old man and I see the long term.

Edited January 15, 2014 by OscarV

[jburlowski]

Link please....

padpadpadpad

[393foureyedfox]

Ive got no problem with Japanese involvement in the bourbon industry, it will probably be a positive.

Id be skeered if the Scots bought it!

[White Dog]

No, there are some that want to build a company.

The typical American CEO wants to rape a company.

I am very excited about the Japanese buying Beam/MM because I am sure they want to build something for the future.

See your thing if it makes money than it's good, my thing is if it makes good bourbon than it is good.

But then again I'm an old man and I see the long term.

I agree, Oscar. I'm hoping they take a look at Maker's and ask themselves, if this distillery modeled themselves on S-W, right down to mashbill and yeast, then where the hell are the higher-proofed age-statements?!?

[weller_tex]

Not making generalizations. I am not liberal at all but being liberal or conservative or state of residence has nothing to do with being racist or xenophobic.

Sent from my SCH-I535 using Tapatalk

[callmeox]

Please get this thread back on track. I would hate to have to move it to PR&C.