Bacardi to acquire Patrón Tequila
Bacardi has purchased Patrón Tequila, making Bacardi the premium spirits company in the United States.
Family-owned Bacardi Limited, the largest privately held spirits company in the world, is expanding its portfolio of premium spirits. Bacardi has reached an agreement to acquire 100 percent ownership of Patrón Spirits International AG and its Patrón brand, the world’s best-selling ultra-premium tequila.
The transaction follows the successful relationship the two brands have had for nearly a decade, since Bacardi’s initial acquisition of a minority stake in Patrón in 2008. Patrón is estimated to have an enterprise value of $5.1 billion. The deal should close in the first half of 2018.
This acquisition will make Bacardi the spirits player in the United States and the second largest spirits company in market share by value in the U.S. market.
John Paul DeJoria and Martin Crowley founded Patrón with the goal of creating tequila that is “simply perfect.”
“We started this business more than a quarter century ago with a singular mission: to create an ultra-premium luxury tequila,” said DeJoria. “Today, with that continued commitment to quality and several other extraordinary brands in our portfolio, we produce more than three million cases of distilled spirits annually that are enjoyed around the world. I am proud of what our entire organization has accomplished, and the work we do in giving back to the people and communities in which we operate.”
Tequila is one of the fastest-growing and most attractive categories in the spirits industry, with Patrón the clear market leader in the super-premium segment.
“Patrón and Bacardi were both founded on the principles of quality, integrity and innovation, and driven by a sense of fearlessness — it’s in our DNA,” said Facundo L. Bacardi, chairman of Bacardi Limited. “It has been a privilege being a partner for a number of years with a remarkable entrepreneur like John Paul DeJoria. John Paul’s vision, integrity and courage are responsible for introducing the world to simply perfect tequila. As we move forward together, we will continue to pursue perfection as the guiding light in everything Patrón stands for.”
“Adding Patrón to the Bacardi portfolio creates a tremendous opportunity for the brand outside of the United States,” said Mahesh Madhavan, chief executive officer of Bacardi Limited, “as Bacardi’s international distribution network will help grow Patrón around the world, increasing scale in the U.S. and globally. I look forward to working with the talented team at Patrón.”
The Patrón leadership team, including CEO Edward Brown, chief operating officer David R. Wilson, and chief marketing officer Lee Applbaum, will continue in their roles.
“Patrón is more than just a brand we have built; it has been a personal passion for nearly 20 years. I truly consider the Patrón team my extended family,” said Brown. “As Bacardi has had an ownership stake in Patrón for almost a decade now and truly knows and appreciates our unique business, they are the best and most logical steward to continue our pursuit of perfection.”
photos courtesy of bacardi limited and Patrón