Bacardi slams down deal to buy Patron tequila

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The acquisition comes nearly a decade after Bacardi acquired a minority stake in the tequila company and reflects an enterprise value of $5.1 billion.

Mahesh Madhavan, CEO of privately held Bacardi Limited, said the acquisition will not only help make Patron more popular in the USA, but foreign markets as well.

Bacardi said it has had a minority interest in Patron since 2008.

Bacardi Ltd will buy premium tequila maker Patron Spirits International AG in a $5.1 billion deal, the family-owned liquor company said on Monday, as it seeks to expand in the United States.

Global tequila sales rose 5.2 percent in 2016, according to research firm IWSR, while the overall market for alcoholic drinks fell 1.3 percent. It said the trend had moved away from drinking tequila as a shot to "high quality, cocktail combinations and sophisticated sipping products".

The deal comes days after Pernod Ricard bought out Avion Tequila and months after Diageo bought George Clooney's Casamigos tequila for up to $1 billion.

Bermuda-based Bacardi was founded in Cuba in 1862, selling its namesake rum. Today it holds brands including Grey Goose vodka, Dewar's whisky and Bombay Sapphire gin.

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