DEERFIELD, Ill. (AP) -- Beam Inc. said Monday that it has agreed to buy the Pinnacle Vodka and Calico Jack rum brands, along with other related assets, for $605 million in cash, from White Rock Distilleries.
Beam, which makes Jim Beam bourbon, Courvoisier cognac and Sauza tequila, said the addition of Pinnacle will boost its presence in the large and growing vodka category and increase the company's overall shareholder value.
White Rock Distilleries is based in Lewiston, Maine.
Pinnacle's 2012 sales volumes are expected to exceed 3 million 9-liter cases and it's one of the largest imported vodka brands in the United States. It makes both unflavored and flavored variations, including a line of whipped dessert flavored vodkas, Beam said.
Beam said it doesn't expect the acquisition to affect its 2012 earnings, but said it will boost its 2013 results by between 5 cents and 10 cents per share in 2013 and more in the next year and beyond. The company said it also expects the deal to result in cost savings that should exceed 20 percent of the brand's sales.
Beam said it plans to finance the deal, which is expected to close in the second quarter, with either existing credit or new debt, or a combination of both.