Bacardi to buy Patrón tequila in $5.1B premium spirits deal

Bacardi and Patrón are about to share corporate ownership on the top shelf of the world's premium spirits.

Family-owned Bacardi Limited on Monday announced it is buying Patrón Spirits International and its Patrón brand — the world's top-selling premium tequila — in a deal that values the brand at $5.1 billion.

The transaction would give Bacardi full ownership of Patrón after holding what it characterized as a significant minority stake in the company since 2008.

Expected to close during the first half of 2018, the deal will make Bacardi the No. 1 U.S. spirits player in the super-premium segment, Bacardi said, citing the most recent data from IWSR, the leading source of analysis on the beverage alcohol market.

The transaction would also make Bacardi the second-largest spirits company in market share by value in the in the U.S. market, the company said.

Bacardi, the largest privately held spirits company, produces and markets more than 200 brands and labels, including Bacardi rum, Grey Goose vodka, Dewars blended Scotch whiskey and Bombay Sapphire, a premium gin.

Along with Patrón tequila, the spirits portfolio of privately-held Patrón includes Roca Patrón, XO Cafe, Pyrat and Ultimat.

The companies agreed to the deal as spirits companies vie to own more of the ultra-premium brands that are increasingly favored by consumers. The firms said tequila is one of the spirits sector's fastest-growing and most attractive categories, with Patrón being the "clear market leader" in tequila.

"Patrón and Bacardi were both founded on the principles of quality, integrity, and innovation, and driven by a sense of fearlessness — it's in our DNA, Bacardi Chairman Facundo Bacardi said in a formal statement. "As we move forward together, we will continue to pursue perfection as the guiding light in everything Patrón stands for."

Edward Brown, Patrón's president and CEO, said Bacardi "truly knows and appreciates our unique business" from the companies' earlier partnership. "They are the best and most logical steward to continue our pursuit of perfection," added Brown.

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Brown and other members of Patrón's leadership team will continue in their current roles, the companies said. After the transaction closes, Paul DeJoria, co-founder of Patrón tequila, will serve as an ambassador for Patrón in the role of chairman emeritus, the companies said.

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc