MEXICO. Fast-growing Gruppo Campari announced today that it has purchased an 80% interest in Cabo Wabo Tequila, the ultra-premium tequila founded by rock star and tequila connoisseur Sammy Hagar.
Cabo Wabo is one of the fastest-growing brands in the US spirits markets. The deal was valued at US$ 80 million (€ 60 million), corresponding to 11.8 times the expected EBITDA in 2007. The transaction is anticipated to close in January 2008 and will be paid in cash.
“Cabo Wabo is a strategic acquisition for Gruppo Campari as it significantly contributes to build our diverse portfolio of ultra premium brands in the US”, said Gruppo Campari CEO Enzo Visone.
“We are proud to have concluded another important deal that not only enables us to further strengthen our position in the US ultra premium spirits market, but also to increase Gruppo Campari’s focus in tequila by owning a brand in a very important and growing category.”
Cabo Wabo is an ultra-premium tequila, including Cabo Wabo Reposado, Cabo Wabo Añejo, Cabo Wabo Blanco, and new ultra luxury Cabo Uno, barrel-aged for three years.
With a volume of approximately 70,000 nine-litre cases, mainly sold in the US, Cabo Wabo is one
of the fastest-growing brands in the US spirits market
Cabo Wabo is made from 100% Blue Weber Agave. It was founded in 1996 by Sammy Hagar who, after a successful solo career, became the lead singer/songwriter for Van Halen in the 80s and early 90’s.
Hagar said: “When I created Cabo Wabo, I never dreamed that it would be received so well by my fans and people who really love good tequila. While I am proud of its success, it’s time to let the world have a shot at the best tequila on the planet and Gruppo Campari can help take us there.”
Hagar and his associate Marco Monroy will continue to own 20% of Cabo Wabo. But Gruppo Campari will have the opportunity to buy the remaining 20% interest in Cabo Wabo in two tranches of 15% and 5% through call/put options to be exercised in 2012 and 2015 respectively.
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