Bacardi to buy Patron for $5.1 Billion


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 purchase will combine 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.

The merger will give incoming Chief Executive Officer Mahesh Madhavan a prestigious brand as he works to expand Bacardi’s global footprint. The executive, who is poised to take the reins on April 1, plans to boost sales by getting overseas consumers to trade up from local spirits.

Bermuda-based Bacardi, which already sells Cazadores tequila, accounted for 5.8 percent of the total alcoholic beverage market in 2017, according to data from IRI, a research firm.


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