Bacardi Limited will acquire the maker of Patron in a deal valued at $5.1 billion, the spirits company announced Monday.
Patron is a well-known brand of ultra-premium tequila. Bacardi, which is known for its rum, took a minority stake in the brand’s parent company in 2008.
The deal will make Bacardi the No. 1 spirits player in the super-premium segment in the U.S. and the second largest spirits company in market share by value in the U.S., the company said, citing IWSR data.
“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,” said Mahesh Madhavan, CEO of Bacardi Limited.
Tequila has been a very fast-growing category, which has benefited from consumers’ shifting taste away from beer and vodka.
Patron’s leadership will remain in place when the deal closes. The deal is expected to close in the first half of this year.
