Bacardi Buys Patron for $5B as High-End Tequila Booms
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Bacardi Ltd. has scooped up Patron in a deal that instantly makes it a major player in the surging high-end tequila market. The deal values Patron at $5.1 billion and is expected to close in the first half of the year, Bacardi announced today. Privately-held Bacardi previously had a minority stake in Patron.
It’s too early to assess how the acquisition will affect ad agencies, but the deal could present an opportunity for Omnicom Group, which has a tight grip on Bacardi. Omnicom’s BBDO Worldwide handels global creative for most of Bacardi’s brands, which include its namesake rum as well as Grey Goose vodka, while OMD has media duties across the Bacardi portfolio. Patron uses MullenLowe for creative and the agency’s MediaHub for media. One bright spot for Mullen is that Patron’s senior leadership team will remain in their roles, including Chief Marketing Officer Lee Applbaum.
A Bacardi spokeswoman said it was too early to speculate on agency maneuvers. BBDO referred calls to Bacardi. A MullenLowe spokesman declined comment.
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