Bacardi Ltd. is adding the ultra-premium top-selling tequila brand in the world to its portfolio of spirits with the announced acquisition of Patrón Spirits International.
This agreement for acquiring Patrón should be completed within the first six months of 2018. It will give Bacardi, based in Bermuda, 100% ownership. Bacardi has been a minor stakeholder in the company since 2008.
Barry Kabalkin the vice chairman of Bacardi and a board member of Patrón said that Patrón is one of the most sought after spirits in the world and Bacardi is very excited to take the longstanding relationship it has with Patrón to another level.
With this acquisition, Bacardi which is family-owned will be the top spirts business in the category “super-premium” in the U.S. and the second biggest in U.S. market share. In the transaction Patrón has been valued at $5.1 billion.
Patrón began operations in 1989 and produces over 3 million cases annually of spirits and its vodkas, tequilas and liqueurs can be purchased in over 100 countries.
CEO of Bacardi Mahesh Madhavan said that adding the Patrón line to the portfolio of Bacardi creates a huge opportunity outside the U.S. for Patron as the international distribution of Bacardi will help Patrón to grow worldwide.
Entrepreneurs Martin Crowley and John Paul DeJoria founded Patrón. Their goal was to create what they called“simply perfect” tequila.
Bacardi, which started its business as a manufacturer of rum almost 156 years ago in Santiago de Cuba, has moved far beyond just its signature rum.
It now has a who’s who of brand in the industry that include Bombay Sapphire gin, Grey Goose vodka, Martini vermouth, Dewar’s whiskey, sparkling wines as well as Corzo and Cazadores tequilas amongst other emerging spirits.
Patrón CEO Edward Brown, COO David Wilson and CMO Lee Applebaum will remain in their current roles after the acquisition has been completed. After the deal is closed, DeJoria will be the Ambassador for Patrón holding the role of the company’s chairman emeritus.
Sales statistics, especially those at the tequila spectrum’s high end, indicate the growing importance of the spirit amongst consumers. According to DISCUS the Distilled Spirits Council of the U.S., tequila sales from 2002 to 2016 expanded by almost 121% by volume and an almost unbelievable 706% amongst super premium bottlings.