Sazerac is strengthening its presence in the British spirits market with the acquisition of Au Vodka, a UK-based brand also active in the ready-to-drink cocktail segment, in a deal that, according to a source familiar with the matter cited by Reuters, is valued at more than 300 million pounds, equivalent to approximately $405 million.
The agreement represents a new step in the international expansion strategy of the US group, which has already acquired several brands over the course of the year and has a portfolio of over 500 brands, including Buffalo Trace Bourbon, BuzzBallz, Fireball Cinnamon Whiskey and SVEDKA Vodka.
Sazerac is a private company controlled by the Goldring family, with roots dating back to the 1850s. With the acquisition of Au Vodka, it now aims to consolidate its business in the UK, providing the Welsh brand with a broader distribution network to support its international development.
Founded in Swansea in 2015 by friends Charlie Morgan and Jackson Quinn, Au Vodka has grown rapidly, building on the idea that vodka doesn't have to be unoriginal, creating an instantly recognizable visual identity and a proposition that appeals especially to younger consumers.
“Au Vodka is a brand we’ve long admired, and it’s seen phenomenal growth since 2015,” said Sazerac Chairman and CEO Jake Wenz, calling what the two founders have accomplished in just over a decade a “spectacular and rare” achievement.
“This transaction allows Sazerac to further expand its portfolio in the UK, while offering AU a path to global growth,” added Wenz, indicating the ability to bring the brand to new countries as one of the main objectives of the acquisition.
For Charlie Morgan, the transition under the control of Sazerac represents "the right and natural next step" for a company born solely from an idea and the belief that it was possible to renew a consolidated category like vodka, to the point of transforming Au into "one of the most disruptive brands of this generation."
Morgan also emphasized the new owner's family-owned nature and his ability to develop brands without stripping them of the characteristics that have made them recognizable, explaining that with Sazerac Au Vodka, he will be able to reach more consumers and more markets at a speed that would be difficult to sustain as an independent business.
The deal comes as Sazerac continues to cultivate ambitions for consolidation in the global spirits market, as evidenced by the offer made earlier this year for Brown-Forman, the maker of Jack Daniel's whiskey and the group's neighbor in Louisville, Kentucky, at a price of $32 per share and a total valuation of approximately $15 billion.
The offer was rejected by Brown-Forman's board of directors, but Sazerac continued its expansion through more targeted acquisitions, including that of Au Vodka, which is strategically important because it strengthens the group's presence in a highly competitive category.
This marks the beginning of a new phase for the British brand, supported by the production, distribution, and financial resources of one of the largest private operators in the sector. Sazerac will be able to leverage its strong recognition to consolidate its position in the United Kingdom and support its growth in other markets.
PJT Partners advised Au Vodka financially, DLA Piper acted as legal counsel to the shareholders, and PwC advised the founders, while Dorsey & Whitney advised Sazerac as legal counsel.
