Diageo, the leading alcoholic drinks company, has reached an agreement to acquire Don Papa Rum, a super-premium, dark rum from the Philippines.
In a press release, Diageo said the acquisition involved an upfront consideration of €260 million ($282 million) with a further potential consideration of up to €177.5 million ($192.5 million) through to 2028 subject to performance.
Founded in 2012, and available in over 30 countries worldwide, Don Papa Rum is claimed to have a unique flavour profile, highly distinctive packaging, and is distilled and aged in American oak barrels on the island of Negros Occidental.
“We are excited by the opportunity to bring Don Papa into the Diageo portfolio to complement our existing rums”, said John Kennedy, president, Diageo Europe and India. “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”.
Stephen Carroll, founder of Don Papa Rum, will remain involved with the brand.