The French company Pernod Ricard announced it has acquired 100% of the shares of the Vin & Sprit Group ("V&S"), the owner of Absolut vodka. The acquisition does not include V&S' 10% interest in Beam Global Spirits & Wine, Inc. Pernod Ricard will pay 5.28 billion euros ($8.34 billion) to the Swedish government.

In addition to the purchase price, Pernod is assuming debt of 346 million euros, taking the total cost of the transaction to 5.63 billion euros, spokeswoman Florence Taron added.

Absolut is the number 1 premium vodka brand worldwide with around 11 million 9 litre cases sold in 2007 and is one of only four international spirits brands in the world which sells more than 10 million cases a year and has a specially attractive growth profile (+9% volume growth in 2007).

The announcement was made after months of rumors and speculations over who would buy the state-owned firm and the world's second largest vodka label.

"Pernod Ricard submitted an offer that on an overall assessment is the most attractive," the Swedish government said in a statement. "Pernod Ricard will be an excellent home for V&S. The board of V&S has expressed that they see significant industrial logic in the transaction."

In the United States, Absolut is the top premium spirits brand, selling more than 5 million 9 litre cases.

“Absolut fits perfectly with Pernod Ricard's strategy and further enhances the strength of our premium brands portfolio, complementing Chivas, Ballantine's, The Glenlivet, Jameson, Martell, Beefeater, Ricard, Malibu, Kahlua, Havana Club, Mumm, Perrier-Jouet, Jacob's Creek and Montana”, the French company said in a statement.

The acquisition of V&S also provides Pernod Ricard with a leading position in the Nordic wine & spirits market through its portfolio of local brands.