Castle Brands Board (ROX)

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Bacardi inks $5.1B deal for Patrón tequila


ROX'ers can hold out hope that growth will someday make us worth at least a few dollars per share.


Keith Larsen, Reporter - South Florida Business Journal
Jan 23, 2018, 9:35am EST


Bacardi Limited announced Monday that it reached an agreement to acquire 100 percent ownership of Patrón Spirits International AG.


Bacardi, which has its U.S. operations in Miami, previously acquired a minority stake in Patrón back in 2008. The transaction values Patrón at $5.1 billion and is expected to close in the first half of 2018.


Terms of the deal were not disclosed.


This acquisition will make Bacardi the number one spirits player in the super-premium segment in the U.S. and the second largest spirits company in market share by value in the United States market, according to IWSR data, a leading source for alcohol beverage market data.


“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.


Patrón's leadership team, including Chief Executive Officer Edward Brown, Chief Operating Officer David R. Wilson, and Chief Marketing Officer Lee Applbaum, will continue in their roles, according to Bacardi.


Following the closing of the deal, Bacardi said Patrón's cofounder John Paul DeJoria will serve as an ambassador for Patrón in the role of Chairman Emeritus.


Founded in 1862, Bacardi Limited is the largest privately held spirits company in the world. Bacardi employs about 5,500, while operating more than 20 production facilities and selling its brands in more than 170 countries.


Patrón Spirits International AG is a privately held, leading manufacturer of ultra-premium distilled spirits. Patrón tequilas and liqueurs, Pyrat and Ultimat, are available in more than 100 countries and islands across the world.