Bacardi to acquire Patrón stake

[Count Silvio]

The liquor supplier will buy a “significant minority stake” in the Patrón Spirits Company through a subsidiary

Liquor supplier Bacardi is to acquire a minority stake in the Patrón Spirits Company to help the latter fund a children’s charitable trust to support the education of underprivileged children. Bacardi will buy a “significant minority stake” through a subsidiary and the transaction will result in a payment to the estate of the late Martin Crowley—who worked with Patrón tequila co-founder John Paul DeJoria to create the brand in 1989—in exchange for its interest in the company. The estate will then pay the money to the trust.

Under the terms of the agreement, Bacardi will gain a seat on the Patrón board, which will be filled by Bacardi vice-chairman Barry Kabalkin. Although other details have yet to be revealed, DeJoria will become the principal owner of Patrón parent company Caribbean Distillers Corp. Bacardi and Patrón will continue to operate independently and the agreement does not provide for changes in day-to-day operations at Patrón. The transaction, subject to approval in the courts, is expected to be completed in the next 60 days.

Kabalkin said: “Patrón is one of the fastest-growing products in the liquor industry and becoming a significant shareholder is a fantastic opportunity. We are a family-controlled company with a strong entrepreneurial spirit and a global culture, and we are proud of our highly focused portfolio of iconic brands. Our goal is to enhance the size and scope of the market for Patrón tequila.”

Patrón president and CEO Ed Brown added: “Bacardi and its brands have set many standards in the liquor industry and its worldwide experience can help us to expand in markets inside and outside the US. We look forward to gaining from their international experience as we continue to grow Patrón tequila around the world.”

Source: DFNIonline