Investment banks to split $90M fees for advising acquisition of Beam Inc by Suntory Holdings

January 13
11:06 PM 2014

Centerview Partners will divide fees estimated to reach $90 million with two other banks who are advising the deal involving the acquisition of Beam Inc by Suntory Holdings Ltd, Bloomberg reported. Established in 2006, Centerview Partners is an independent investment bank.

Japan-based Suntory, a closely-held maker of whiskey and beer, will be purchasing Beam in a deal valued at $16 billion, debt included. The acquisition will enable Suntory to create the No.3 premium spirits maker in the world, the report said. Beam's products include the whiskey brand Maker's Mark.

Beam was advised on the deal by Centerview and Credit Suisse Group. Citing data from research company Freeman & Co, the report said both banks will split around $50 million. Freeman added that $40 million is also slated to be received by the investment banking joint venture between Mitsubishi UFJ Financial Group Inc and Morgan Stanley for advising Suntory.

Bloomberg data showed that just two weeks into the New Year, the most recent transaction has propelled the New York-based investment bank to the top 3 spot for advisers of mergers and acquisitions. In 2013, Centerview was at the 16th spot, being involved on the takeovers of such firms as HJ Heinz Co, Dell Inc and Onyx Pharmaceuticals Inc, the report said.

For the Beam-Suntory deal, Centerview's team was headed by Robert Pruzan, the investment bank's co-founder. Pruzan also advised JC Penney Co Chief Executive Officer Mike Ullman in his efforts improve the performance of the struggling retailer.

The top adviser for mergers and acquisitions is still Morgan Stanley. Bloomberg data showed that Morgan Stanley unveiled 8 deals worth $23 billion in the first two weeks of this year. The second spot is taken by Credit Suisse which had 4 deals worth $17 billion, the report said.

Data from its website showed that Centerview was able to advise deals worth $600 billion since its inception in 2006.

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