Diageo has announced it has agreed a €260m deal to acquire super-premium dark rum, Don Papa, which could increase by a further €177.5m subject to performance.
Hailing from the Philippines, Don Papa was launched in 2012 by entrepreneur Stephen Carroll, together with Andrew John Garcia, and is currently available in 30 countries, with France, Germany and Italy being its largest markets.
John Kennedy, President, Diageo Europe and India, said: “We are excited by the opportunity to bring Don Papa into the Diageo portfolio to complement our existing rums. This acquisition is in line with our strategy to acquire high growth brands with attractive margins that support premiumisation, and enables us to participate in the fast growing super-premium plus segment.”
Carroll added: “Diageo has a strong track record in nurturing founder-led brands. They believe in our unique story and have genuinely embraced our brand idea. We believe this acquisition is a great opportunity to take Don Papa into the next exciting chapter of its development.”
Carroll will remain involved with the brand, working alongside Diageo to build on Don Papa Rum’s growth potential.
The acquisition will be funded through existing cash reserves and is expected to close in the first half of 2023.