BACARDI BUYS into PATRÓN
JOHN PAUL DeJORIA, co-founder of Patrón tequila, announced an agreement that will make way for the funding of a children’s charitable trust, while investing in the continued growth of the company. Although the specific terms of the agreement are confidential, they provide for Mr. DeJoria to become principal owner of the parent company of The Patrón Spirits Company (“Patrón”). As part of the transaction, Bacardi Limited will purchase a significant minority stake in the company through a subsidiary, according to Barry Kabalkin, Vice Chairman of Bacardi Limited.
The transaction will result in a payment to the Estate of the late Martin Crowley in exchange for its interest in the company. In accordance with the terms of Mr. Crowley’s will, the Estate will contribute the money to the Windsong Trust, a charitable trust created by Mr. Crowley to support the education of underprivileged children across the globe.
Mr. Crowley teamed up with Mr. DeJoria, who is also the co-founder and Chairman of the Board of John Paul Mitchell Systems, to found Patrón in 1989. “Martin and I shared a commitment to help those in need of assistance throughout the world, and I’m pleased to say that implementation of this agreement will make a truly meaningful difference to those who deserve it most,” explained Mr. DeJoria. He added, “The company has done extremely well, due in large part to our outstanding team of employees, and we have an incredible opportunity to build upon that success with Bacardi, while realizing Martin’s dream to help the world’s underprivileged children.”
The Co-Executors of the Crowley Estate also are looking forward to the opportunities that will result from this agreement. “This agreement will ensure that Martin will be remembered for helping to educate disadvantaged children around the world,” said Co-Executor Gigi Osco-Bingemann. Co-Executor Vadim Fridman added, “Gigi and I are excited to finally begin to fulfill Martin’s legacy.”
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, the relationship is expected to lead to beneficial synergies for the company.
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.