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US: Bacardi buys tequila maker Patron in US$5.1b deal

By  |  January 23, 2018

Drink giant Bacardi has said it will buy tequila maker Patron, as demand grows for high-end versions of the spirit around the world.Bacardi says the deal values Patron at about US$5.1 billion.

Best known for its rum, Bacardi took a minority stake in the tequila firm a decade ago and the two companies have worked closely together since then.

Bacardi already owns the Cazadores and Corzo tequila brands and is the world’s biggest privately-owned spirits firm.

According to recent data by research firm IWSR, the Patron deal will make Bacardi the top spirits maker in the so-called super-premium segment of the US market and the second largest spirits company in the market by value.

Bacardi will tap debt markets to help finance the deal, according to a person familiar with the deal. Bacardi acquired an initial 30% stake in Patron for less than US$500 million in 2008, said Bloomberg.

Full Content: Bloomberg

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