(Beam acquisition story, updated to reflect additional analyst comments and additional data)
NEW YORK (TheStreet) -- William Ackman's favorite market drink, whiskey maker Beam (BEAM), is buying vodka and rum brands from privately held spirits company White Rock Distillers, a deal that nearly doubles Beam's presence in the Vodka market and diversifies its top shelf, but could sober up shareholders betting that a takeover offer is coming.
Beam's acquisition of the fast-growing Pinnacle Vodka brand and a line of flavored rums called Calico Jack's, is the whiskey maker's biggest move so far as a stand-alone purveyor of spirits. Beam was spun out of Fortune Brands (FBHS) in mid-2011.
The $605 million acquisition may dim speculation that the maker of Jim Beam and Makers Mark whiskey can be acquired by a spirits giant like Diageo (DEO), market chatter that began after the 2011 spinoff.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV