Alcohol giant Diageo has swooped in for super-premium brand Don Papa Rum for £230m.
The London-listed drinks company is putting up the cash with a possible £157m consideration through to 2028, subject to performance.
The maker of Jack Walker whisky said the dark rum brand had annual growth of 18 per cent in Europe and 27 per cent in the US, outperforming the European market in Europe from 2016 through to 2021.
Don Papa was launched by entrepreneur Stephen Carroll in 2012 and is available in 30 countries, including France, Germany and Italy.
The rum’s brand story is rooted in the Philippine island of Negros Occidental, using local sugar cane and an oak barrel for ageing.
“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, and enables us to participate in the fast growing super-premium plus segment.”
Last year Diageo bought Casa UM, owner of premium artisanal mezcal brand, Mezcal Unión and the Texas-based whisky producer Balcones Distilling.
Stephen Carroll, founder of Don Papa Rum, added that: “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.”