Beam Inc Acquiring Pinnacle Vodka, Calico Jack Rum

Beam Inc. broke off from Fortune Brands Inc. in 2011 and now the makers of Jim Beam whiskey have announced plans to expand the newly minted business with the $605 million purchase of Pinnacle vodka and Calico Jack rum. The acquisition will cost Beam Inc. $605 million and will give the company access to the quickly growing vodka and rum markets.

The acquisition will be completed with an all cash tender to privately owned company White Rock Distilleries which currently overseas more than 50 brands.

Beam in the meantime will add the well known brands to its already popular Jim Beam bourbon and Sauza tequila.

With bourbon, vodka and other premixed drinks expected to outperform the rest of the spirits market in the coming years Beam, Inc. is prepping itself for success with the acquisition expected to be completed in the current quarter.

Beam executives believes the deal with be neutral in 2012 earnings but will add between $0.05 and $.10 per share earnings during 2013. Beam, Inc. also believes that its vast distribution network and supply chain scale will lead to cost savings of 20% for each brand.

In the meantime White Rock Distilleries will continue to compete with Beam, Inc as the company also owns Epic vodka, several tequila brands, several whiskey brands and various cocktail mixes.

This isn’t the first acquisition for Beam since the company split off from Fortune Brands, in 2011 the company purchased women-focused brand Skinnygirl, a line of drinks created by television personality Bethenny Frankel. Beam Inc, also acquired Irish-whiskey maker Cooley Distillery for $95 million.

Thanks to the popularity of Jim Beam, Maker’s Mark, Courvoiser and various other brands owned by the company Beam, Inc in 2011 had global sales exceeding $2.8 million.