Bacardí to acquire Patrón Spirits for $5.1 billion
SAN JUAN — Bacardí Limited, which comprises more than 200 spirit brands and labels, announced Monday that it has reached an agreement to acquire ownership of Patrón Spirits International AG and its Patrón premium tequila brand in the first half of 2018 in a $5.1 billion transaction. Bacardí has had a minority stake in Patrón since 2008.
According to data cited in the published announcement, this transaction will make Bacardí the leader in the super-premium segment in the U.S. and second largest spirits company in market share by value in that market.
The Patrón Spirits International portfolio includes Patrón, Roca Patrón, Gran Patrón, XO Cafe, Citrónge, Pyrat and Ultimat, as well as limited and special edition distilled spirits. Bacardí’s tequila brands include Cazadores and Corzo. Besides Bacardí rum, some of its other spirit labels are Grey Goose vodka, Bombay Sapphire gin, Dewar’s blended Scotch whisky and Martini vermouth.
In the announcement, John Paul DeJoria, co-founder of Patrón tequila, said the company produces “more than three million cases of distilled spirits annually.”
“Adding Patrón to the Bacardí portfolio creates a tremendous opportunity for the brand outside of the United States as Bacardí’s international distribution network will help grow Patrón around the world, increasing scale in the U.S. and globally,” added Bacardí CEO Mahesh Madhavan.
Patrón CEO Edward Brown, Chief Operating Officer David R. Wilson and Chief Marketing Officer Lee Applbaum will continue in their roles.
Following the closing of the deal, DeJoria will serve as ambassador for Patrón in the role of chairman emeritus and “intends to work with Bacardí to further advance their combined dedication to philanthropic projects and environmental consciousness,” reads the release. Patrón’s efforts, the release adds, have included support for food banks, education and disaster relief, as well as development of an eco-friendly reverse osmosis irrigation system, a process of recycling agave fibers from its tequila production process for use as fertilizer compost, and reforestation of trees in the community surrounding its tequila manufacturing operations in Atotonilco el Alto, Jalisco, Mexico.
Bacardí already operates more than 20 bottling, distilling and manufacturing facilities and sells its brands all over the world.