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Fortune Brands Receives Cash Payment From Pernod Ricard And Acquires Cruzan Rum Brand; Companies Agree To Accelerate Termination Of ABSOLUT Distribution Joint Venture In U.S.; Fortune Brands Receives $230 Million In Cash And Pays $100 Million For Fastest Growing Rum Brand In U.S.; Beam Global Spirits Unit To Transition To Dedicated Sales Force In U.S., Simplifying Route To Market And Enhancing Marketplace Focus.

Publication: M2 Presswire
Publication Date: 29-AUG-08 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
M2 PRESSWIRE-29 August 2008-Fortune Brands: Fortune Brands Receives Cash Payment From Pernod Ricard And Acquires Cruzan Rum Brand; Companies Agree To Accelerate Termination Of ABSOLUT Distribution Joint Venture In U.S.; Fortune Brands Receives $230 Million In Cash And Pays $100 Million For Fastest Growing Rum Brand In U.S.; Beam Global Spirits Unit To Transition To Dedicated Sales Force In U.S., Simplifying Route To Market And Enhancing Marketplace Focus(C)1994-2008 M2 COMMUNICATIONS LTD

RDATE:28082008

Deerfield, Illinois -- Fortune Brands (NYSE: FO) and Pernod Ricard today announced an agreement under which Fortune Brands will receive compensation in exchange for early termination of the company's distribution agreement with Pernod Ricard's ABSOLUT vodka and other brands.

Under the agreement, Pernod Ricard will pay Fortune Brands $230 million in pre-tax proceeds, and Fortune Brands will pay $100 million to Pernod to acquire the premium Cruzan Rum brand. The agreement will result in the termination as of October 1st of the U.S. distribution agreement between Fortune Brands' Beam Global Spirits & Wine business and the U.S. business of V&S Group recently acquired by Pernod. The joint distribution agreement had been scheduled to remain in place through February of 2012.

"This is a win-win agreement that provides significant benefits to Fortune Brands," said Bruce Carbonari, president and chief executive officer of Fortune Brands. "In exchange for accelerating the end of our U.S. distribution...



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