Buys Absoult for 8.3 Billion

Pernod Ricard moved closer to bumping Diageo (DEO) as the world's biggest spirits player with a deal announced Monday to acquire the Swedish state-owned parent of Absolut vodka for $8.3 billion.

The French spirits company outbid several others for the world's best-selling premium vodka, including U.S.-based Fortune Brands (FO), Absolut's current distributor.

Pernod will climb from fourth to second among global spirits sellers with its purchase of Vin & Sprit. Pernod, which bought Allied Domecq for $16 billion in 2005, has been on a quest to be tops in the $200 billion worldwide booze business.

"Our intention is to grow and become the leader," said Pierre Pringuet, Pernod Ricard's managing director, in a conference call.

The company will move within striking distance of Diageo, owner of Smirnoff vodka, with its annual volume of 93 million cases. Pernod Ricard's volume will rise from 75 million cases to 91 million, with Absolut and V&S's Cruzan rum and Plymouth gin.
http://www.usatoday.com/money/industries/food/2008-03-31-absolut-sold_N.htm