Tags: bacardi | tequila | rum

Bacardi Buys Patron, Valuing Tequila Maker at $5.1 Billion

Bacardi Buys Patron, Valuing Tequila Maker at $5.1 Billion

(Soeren Stache/picture-alliance/dpa/AP Images)

Monday, 22 January 2018 09:54 PM

Bacardi Ltd. is tapping into the fast-growing market for tequila by acquiring Patron Spirits International AG in a deal valuing the company at $5.1 billion.

The deal combines two of the world’s largest closely held distillers, putting Grey Goose vodka, Dewar’s scotch and Bacardi rum under the same banner as Patron’s famous tequilas.

Bermuda-based Bacardi, the world’s largest private alcohol company, is transitioning to a new chief executive, Mahesh Madhavan, who will take the reins on April 1. Madhavan’s experience in developing markets will help the company appeal to consumers who are trading up from local spirits, the company previously said. Bacardi already sells Cazadores tequila. The company’s products made up 5.8 percent of the alcoholic beverage market in 2017, according to data from IRI, a research firm.

“Adding Patron to the Bacardi portfolio creates a tremendous opportunity for the brand outside of the United States as Bacardi’s international distribution network will help grow Patron around the world, increasing scale in the U.S. and globally,” Madhavan said in a statement.

Agave-based beverages, which include tequila and mezcal, have seen sales accelerate over the past decade. Super-premium tequila grew 706 percent between 2002 and 2016, according to the Distilled Spirits Council, a trade organization.

The combined company could be the top spirits maker in the super-premium segment in the U.S., according to ISWR data cited by the companies in the statement.

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Bacardi Ltd. is tapping into the fast-growing market for tequila by acquiring Patron Spirits International AG in a deal valuing the company at $5.1 billion.
bacardi, tequila, rum
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2018-54-22
Monday, 22 January 2018 09:54 PM
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