Brown-Forman plans to sell Southern Comfort for $543 million
LOUISVILLE, Ky. (WDRB) -- Southern Comfort's parent company says it is selling the iconic brand to a rival in a $543.5 million deal.
Liquor producer Brown-Forman Corp. said Thursday that both Southern Comfort and Tuaca will be sold to Sazerac.
Brown-Forman CEO Paul Varga says decision to sell the brands reflects the Louisville-based company's "evolving portfolio strategy" and its focus on top-priority brands. Brown-Forman's dominant brand is Jack Daniel's Tennessee Whiskey.
The company acquired Southern Comfort in 1979, but the brand has struggled in recent years.
Varga has said the growth of flavored whiskeys has hurt Southern Comfort sales.
Sazerac CEO Mark Brown says his company looks forward to building the Southern Comfort and Tuaca brands.
Brown-Forman says the deal will result in a one-time operating income gain of about $475 million for the company.