(Reuters) - Brown-Forman Corp, 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.
Brown-Forman 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 Group Inc 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 LLP advised Brown-Forman, while Wells Fargo Securities is Metairie, Louisiana-based Sazerac’s financial adviser.
Reporting by Subrat Patnaik in Bengaluru; Editing by Kirti Pandey
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