Pernod Ricard Buying Fever-Tree
: an acquisition proposal evaluation

  • Aaron Henzgen (Student)

Student thesis: Master's Thesis


The present dissertation analyzes a potential acquisition of Fever-Tree by Pernod Ricard. Pernod Ricard is the world's second-largest wine and spirits company, aiming to become the leading producer by organic growth and M&A activity. Fever-Tree is a producer of premium alcoholic mixer drinks with a promising revenue outlook and a strong focus on key industry trends. The study includes a detailed analysis of the businesses themselves and the respective industries as well as an in-depth valuation of the separate entities and the two entities combined. The objective is to evaluate the acquisition price of Fever-Tree and whether the acquisition is value-creating or value-destructing. The analysis indicates that an acquisition under the current market is more difficult due to an overvaluation of Fever-Tree. The combined entity has a value of €63.816 mm, including synergies of €693 mm. For Pernod Ricard’s shareholders, value is only created by an acquisition price below €1.996 mm, indicating an acquisition premium below 20%. Given the current market overvaluation, negotiations with the co-founders are recommended. If the negotiations are not successful, a tender offer is suggested, offering a 15% premium with a minimum of 51% of shares sold.
Date of Award4 Jul 2023
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorAntónio Borges de Assunção (Supervisor)


  • Acquisition
  • Valuation
  • Synergies
  • Alcoholic beverages industry


  • Mestrado em Finanças

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