Jack Daniel’s owner to sell Southern Comfort, Tuaca brands

Brown-Forman, the maker of Jack Daniel's whiskey, said it would sell its liqueur brands, Southern Comfort and Tuaca, to alcohol maker Sazerac for $543.5 million (€499m).

The group, which owns the Slane Castle Irish Whiskey Company, said the sale would contribute about $475 million to its fiscal 2016 operating income.

Reuters reported in September, citing sources, that the company had hired Goldman Sachs to explore a sale of some brands as it wanted to focus on its core whiskey business.

Brown-Forman chief executive Paul Varga said on Thursday the decision to sell these brands reflected the company's "evolving portfolio strategy."

The Louisville, Kentucky-based company acquired Southern Comfort in 1979 and Tuaca in 2002.

Brown-Forman shares were unchanged at $91.51 in premarket trading.

Goldman Sachs and Gibson, Dunn & Crutcher advised Brown-Forman, while Wells Fargo Securities is Metairie, Louisiana-based Sazerac's financial adviser.

Reuters