:. Food Industry News

Categories: Mergers and Acquisitions

Fortune Brands Takes Partner for V&S Bid

Source: Reuters
26/03/2008

Stockholm, March 26 - U.S. firm Fortune Brands has teamed up with private equity group Nordic Capital in its bid to buy Absolut Vodka maker Vin & Sprit from the Swedish state, a source with knowledge of the matter said on Wednesday.

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The source confirmed a report in Sweden's Svenska Dagbladet newspaper which said Fortune Brands and Stockholm-based Nordic Capital intended to split V&S between them.

Fortune Brands will keep premium vodka brand Absolut and Nordic Capital will take over business areas Distillers and Wines, a smaller part of the company, the paper wrote, citing unnamed sources close to the process.

"It is logical that a big player teams up with someone who can take on the remaining part (of the business), and who has an important national and Nordic connection," the source, who declined to be identified, told Reuters.

Spokespersons for Nordic Capital and Fortune Brands were not immediately available for comment.

Binding bids for V&S are due on Thursday from the four remaining bidders, a separate source close to the process said earlier this week.

France's Pernod-Ricard, Bermuda-based Bacardi, and Swedish private equity group EQT, which is bidding in cooperation with investment firm Investor, were still in the process, along with Fortune Brands, the second source said.

Analysts expect the sale of Vin & Sprit, the biggest so far in Sweden's planned privatisation effort, to fetch $6 billion to $7 billion.



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