Bacardi Buys Patrón Tequila For $5.1 Billion
Bacardi, known to be sipped on as if celebrating one's birthday, purchased Patrón tequila, Lil Jon's choice of drink, in a $5.1 billion deal this week.
Forbes reports that Bacardi Limited will be adding Patrón Spirits International AG to its family of spirits that include Grey Goose vodka, Bombay Sapphire gin, Dewar's Scotch whiskey, Martini vermouth and other notable names.
Bacardi and Patrón have been in business with each other for a decade now, with Bacardi first acquiring a 30% stake in the company in 2008. Patrón's co-founder, John DeJoria, will now sell his 70% of the company and remain as the brand's ambassador.
Meanwhile, shares of Becle SAB, makers of José Cuervo, have risen almost to a record high since the Bacardi-Patrón buyout, according to Bloomberg. This could make José Cuervo attractive to other major companies looking to mimic Bacardi.