US. Bacardi is to acquire a significant minority stake in premium tequila company Patrón through a subsidiary, Bacardi Limited Vice Chairman Barry Kabalkin has confirmed.
The deal, which is subject to court approval, is expected to be concluded within 60 days.
Bacardi and Patrón will continue to operate independently. Day-to-day operations of Patrón and Patrón’s management and distributor network will remain unchanged.
“Bacardi and its brands have set many standards in the spirits industry and its worldwide experience can certainly help us grow in markets both inside and outside of the US,” said Patrón President and CEO Ed Brown.
“We look forward to gaining from their international experience as we continue to grow Patrón around the world.”
Under the agreement, Bacardi will hold one seat on the board of Patrón’s parent company. Kabalkin will be appointed to the board position. The agreement also provides for Patrón Tequila co-founder John Paul DeJoria to become principal owner of the parent company of The Patrón Spirits Company (“Patrón”).
“Patrón is one of the fastest-growing products in the entire spirits industry, and becoming a significant shareholder is a fantastic opportunity for Bacardi,” said Kabalkin.
“We are a family-controlled company with a strong entrepreneurial spirit and global culture, and are proud of our highly focused portfolio of iconic brands. We now look forward to teaming up with Ed Brown, with the goal of enhancing the size and scope of the market for Patrón tequila, an already incomparable brand.”
Under the terms of the purchase, Bacardi will make a payment to the estate of the late Martin Crowley, who along with DeJoria co-founded Patrón in 1989, in exchange for its interest in the company.
In accordance with the terms of Crowley’s will, the estate will contribute the money to the Windsong Trust, a charitable trust created by Crowley to support the education of underprivileged children across the globe.
“Martin and I shared a commitment to help those in need of assistance throughout the world, and I’m pleased to say that implementation of this agreement will make a truly meaningful difference to those who deserve it most,” explained DeJoria.
“The company has done extremely well, due in large part to our outstanding team of employees, and we have an incredible opportunity to build upon that success with Bacardi, while realising Martin’s dream to help the world’s underprivileged children.”
Bacardi Chairman of the Board Facundo L. Bacardi added: “John Paul DeJoria and Martin Crowley are to be congratulated for creating an extraordinary, hand-crafted product and achieving its enormous success in the marketplace – and for their contribution to the growth of the tequila industry overall. We look forward to this new relationship and to working together.”
[comments]
Your post will appear – once approved – in
The Moodie Forum on our home page
MORE STORIES ON THE PATRÓN SPIRITS COMPANY
Patrón on track with New Orleans charity initiative – 22/07/08
Patrón Tequila raises US$100,000 for The Smile Train at charity golf tournament – 27/05/08
Patrón tequila announces listing breakthrough with King Power Thailand – 07/05/08
Patrón targets Europe with new distribution contracts – 21/04/08
