Bill Ackman got a reputation booster shot Monday when Japanese distiller Suntory agreed to buy bourbon maker Beam Inc. for $16 billion.
The hedge-fund mogul and shareholder activist is the biggest Beam shareholder, and the sale means his haul from pressuring Fortune Brands in 2010 to split into three pieces — including Beam — is $1.4 billion, according to a source close to Ackman.
His renown as a top-shelf investor is bolstered, changing the narrative from huge losses last year in JCPenney and Herbalife.
(On Monday, Herbalife shares dropped 2.41 percent on the Beam news.)
“He’s very focused on the reputation of his business,” the source close to Ackman said.
Ackman kept a low profile Monday.
The value of Ackman’s Beam investment itself rose 25 percent on the news, earning him roughly $370 million.
Ackman told investors in 2011 that a Beam competitor would acquire the maker of Jim Beam, Maker’s Mark and Knob Creek bourbons, when Fortune Brands spun off the division, a source said.
“He was not sure who the buyer would be,” a source said to The Post, but Ackman was convinced that a peer would pay a much higher multiple for Beam if it were a stand-alone company.
Suntory’s agreement to pay $83.50 per share in cash — a multiple of more than 20 times Beam’s EBITDA for the 12-month period ended Sept. 30 — is expected to close in the second quarter.
The Japanese buyer and Beam, which are already linked by the fact that they distribute each other’s products in their home markets, have been keeping this a very good secret.
“I think this deal came as a complete surprise to everyone — including rivals Diageo, Pernod Ricard, Brown-Forman and Bacardi,” an industry source said.
“People thought Suntory would be more of a partner with a company like Constellation Brands in bidding for Beam,” the source said.
“I would say Diageo and Pernod now need to figure out what to do next.”
Making a counter-bid is likely not on the agenda due to the rich price, sources said.
Suntory can pay more than peers because it is borrowing money from Bank of Tokyo-Mitsubishi UFJ at close to a 0 percent interest rate.
There is a relatively low break-up fee for six weeks, which will then ratchet up if there are no rival offers, the source said.
Suntory will likely make few changes to the Beam business itself, the industry source said.