DURBAN - International spirits company Bacardi has acquired Patrón Spirits International AG outright, the manufacturers of popular tequila brand Patrón.
Bacardi paid $5.1 billion (R60.6 billion) and the purchased was announced early this week.
The spirits company already owned 30% of Patrón, which they acquired in 2008 and industry insiders have long speculated that Bacardi will the in end completely buy out the company.
The transaction is expected to end by the first half of 2018.
It will allow Bacardi to add an additional brand-name liquor to a list of names that already include Grey Goose vodka, Dewar's scotch whiskey and a fleet of eponymous rums.
As a part of the purchase, the co-founder of Patrón John Paul DeJoria will sell 70% of his stake in Bacardi. According to Forbes DeJoria is worth an estimated $3,4 billion.
Due to Bacardi's purchase price including taking possession of Patrón’s undisclosed amount of debt it is not clear how DeJoria's net worth will change after the deal has concluded.
Patrón was launched in 1989 by DeJoria and co-founder Martin Crowley.
Crowley passed away in 2003 after which a long legal battle occurred when DeJoria bought Crowley's stake in Patrón.
In 2008 DeJoria became the majority owner in Patrón, which was the same year Bacardi bought a stake in the company.
In a press release, DeJoria said "Today…we produce more than three million cases of distilled spirits annually that are enjoyed around the world. I am proud of what our entire organization has accomplished".
DeJoria will stay on with the firm as an ambassador for Patrón with a role as Chairman Emeritus.
- BUSINESS REPORT ONLINE