The family-owned Venezuelan rum brand Diplomático and its assets were acquired for US$725 million, which the U.S. corporation Brown-Forman agreed to pay, according to a U.S. Securities and Exchange Commission report.
The agreement, which also establishes the purchase of the distillery in the Venezuelan Andes, the bottling plant in Panama, and the rest of the assets of Distillers United Group S.L., in Spain, as the company “Destilerías Unidas Sociedad Anónima,” DUSA, is registered in Venezuela, includes a payment of US$50 million for certain post-closing costs and expenses.
Brown-Forman, dedicated to the spirits and wine business and also the owner of Jack Daniel’s, informed last October 6 about the incorporation of Diplomático Rum to its portfolio, whose amounts established for the purchase-sale process were known this October 13.
“This brand of aged rum has distinctive packaging, strong brand positioning, and is a delicious tasting spirit,” said Lawson Whiting, president and CEO of Brown-Forman Corporation, calling it a fast-growing super-premium rum.
The transaction is expected to be completed within 90 days.
In the meantime, Diplomático’s current owners agreed to a series of clauses, including maintaining the ordinary course of business before closing, without participation in certain transactions.
The Brown-Forman corporation noted in its press release that the Distillers United S.L. group would continue to manage production and aging, carefully crafted at its original distillery at the foot of the Andes Mountains, while more than 100 new employees will be hired.
Diplomático Rum’s annual growth rate has been 17% in recent years, representing 8% of the world’s spirits, with a traditional range that includes Planas, Mantuano, Reserva Exclusiva, and Selección de Familia.
With information from Bloomberg