Bacardi has held a “significant minority stake” in Patrón since 2008, and the two companies enjoy a close relationship, but the Tequila maker will now join the likes of Grey Goose and Bombay Sapphire in the Bacardi portfolio.
The move comes as demand for high-end Tequila continues to grow around the world. A recent market report by the UK's Wine & Spirit Trade Association (WSTA) found annual Tequila sales in the UK grew 5% in 2016 to $18.1m (£13m).
The WSTA said that Tequila consumption had now shifted away from drinking the spirit as a shot, and instead was now being enjoyed in "high-quality, cocktail combinations and sophisticated sipping products".
Patrón is the latest Tequila brand to be snapped up by a global drinks giant. Cazadores and Corzo are already owned by Bacardi, while George Clooney's Tequila company Casamigos was sold to drinks giant Diageo in a deal worth $1bn (£720m) last year.
Patrón's senior team, including CEO Edward Brown, COO David R Wilson and CMO Lee Applbaum, will continue in their roles, while co-founder John Paul DeJoria will serve as an "ambassador for Patrón" in the role of chairman emeritus.
“We started this business more than a quarter century ago with a singular mission – to create an ultra-premium, luxury Tequila,” said DeJoria. “Today, with that continued commitment to quality and several other extraordinary brands in our portfolio, we produce more than 3m cases of distilled spirits annually that are enjoyed around the world.
"I am proud of what our entire organisation has accomplished and the work we do in giving back to the people and communities in which we operate.”
Global sales opportunity
“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,” said Facundo L Bacardi, chairman of Bacardi Limited.
“It has been a privilege being a partner for a number of years with a remarkable entrepreneur like John Paul DeJoria. John Paul’s vision, integrity and courage are responsible for introducing the world to simply perfect Tequila. As we move forward together, we will continue to pursue perfection as the guiding light in everything Patrón stands for.”
Bacardi CEO Mahesh Madhavan added: "Adding Patrón to the Bacardi portfolio creates a tremendous opportunity for the brand outside of the US as Bacardi's international distribution network will help grow Patrón around the world, increasing scale in the US and globally."
Bacardi was founded in Cuba in 1862 with a focus on making rum, but has grown to become the world’s biggest privately owned spirits firm.