Jack Daniel's heirs clash as $15 billion hostile bid threatens family control
Heirs W.L. Lyons Brown III and Stuart Brown have publicly accused the Brown-Forman board of mismanagement while a $15 billion unsolicited offer from Sazerac looms.
W.L. Lyons Brown III and his brother Stuart Brown sent a detailed missive to over 130 Brown relatives, charging the Brown-Forman board with “rewarding failure” after the stock fell from the mid-$70s to the mid-$20s per share, erasing billions of family wealth. Their criticism targets the board’s secrecy over a failed merger with Pernod Ricard and the rejection of a $15 billion cash offer from rival Sazerac, which claims a 40% premium to recent trading prices.
The dissenting brothers, who are not part of the Wolf Pen Branch investment vehicle that controls about 60% of voting shares, hope to rally other family members to their cause. Chairman Marshall Farrer, a fifth-generation Brown, and outgoing CEO Lawson Whiting are trying to steady the 156-year-old spirits maker amid declining sales, an 18% drop in net income, and a 12% workforce reduction. Sazerac has kept its offer open, while the board labeled it non-actionable. The feud underscores the tension between preserving family control and addressing the company’s financial challenges.
Why it matters
The dispute could reshape ownership of a major spirits brand and affect a $15 billion takeover bid.
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