Bacardi Buys Minority Stake in Patron
**Alert**
John Paul DeJoria, co-founder of Patrón tequila today announced an agreement that will make him principal owner of the parent company of The Patrón Spirits Company. In addition, Bacardi Limited will purchase a significant minority stake in the company through a subsidiary, according to Barry Kabalkin, vice chairman of Bacardi Limited. Specific terms of the agreement are confidential
The transaction will result in a payment to the estate of the late Martin Crowley (co-founder of Patron) in exchange for its interest in the company. In accordance with the terms of Crowley’s will, the estate will contribute the money to the Windsong Trust, a charitable trust created by Crowley to support the education of underprivileged children across the globe.
Recall that Crowley teamed up with DeJoria, who is also the co-founder and chairman of the Board of John Paul Mitchell Systems, to found Patrón in 1989.
Bacardi and Patrón intend to operate independently from each other and the agreement does not provide for changes in the day-to-day operations of Patrón or in Patrón’s management or distributor network. However, the companies said the “relationship is expected to lead to beneficial synergies.”
“Bacardi and its brands have set many standards in the spirits industry and its worldwide experience can certainly help us grow in markets both inside and outside of the U.S.,” said Ed Brown, President and ceo of Patrón. “We look forward to gaining from their international experience as we continue to grow Patrón around the world.”
Under the agreement, Bacardi will hold one seat on the board of directors of Patrón’s parent company. Mr. Kabalkin will be appointed to the board position.
“Patrón is one of the fastest growing products in the entire spirits industry, and becoming a significant shareholder is a fantastic opportunity for Bacardi,” said Kabalkin.
The parties intend to close the transaction, which is primarily subject to certain court approvals, within approximately 60 days.
Until later, Megan
“To be great is to be misunderstood.”
Ralph Waldo Emerson
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John Paul DeJoria, co-founder of Patrón tequila today announced an agreement that will make him principal owner of the parent company of The Patrón Spirits Company. In addition, Bacardi Limited will purchase a significant minority stake in the company through a subsidiary, according to Barry Kabalkin, vice chairman of Bacardi Limited. Specific terms of the agreement are confidential
The transaction will result in a payment to the estate of the late Martin Crowley (co-founder of Patron) in exchange for its interest in the company. In accordance with the terms of Crowley’s will, the estate will contribute the money to the Windsong Trust, a charitable trust created by Crowley to support the education of underprivileged children across the globe.
Recall that Crowley teamed up with DeJoria, who is also the co-founder and chairman of the Board of John Paul Mitchell Systems, to found Patrón in 1989.
Bacardi and Patrón intend to operate independently from each other and the agreement does not provide for changes in the day-to-day operations of Patrón or in Patrón’s management or distributor network. However, the companies said the “relationship is expected to lead to beneficial synergies.”
“Bacardi and its brands have set many standards in the spirits industry and its worldwide experience can certainly help us grow in markets both inside and outside of the U.S.,” said Ed Brown, President and ceo of Patrón. “We look forward to gaining from their international experience as we continue to grow Patrón around the world.”
Under the agreement, Bacardi will hold one seat on the board of directors of Patrón’s parent company. Mr. Kabalkin will be appointed to the board position.
“Patrón is one of the fastest growing products in the entire spirits industry, and becoming a significant shareholder is a fantastic opportunity for Bacardi,” said Kabalkin.
The parties intend to close the transaction, which is primarily subject to certain court approvals, within approximately 60 days.
Until later, Megan
“To be great is to be misunderstood.”
Ralph Waldo Emerson
--------- Sell Day Calendar ----------
Today’s Sell Day: 20
Sell days this month: 23
Sell days this month last year: 22
This month ends on a: Thur
This month last year ended on a: Tues.
YTD sell days Over/Under: +0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 7:26 AM
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