Jose Cuervo owner secures $ 150 million loan to buy McGregor from Eire Born Spirits

Tequila brand owner Jose Cuervo has secured a $ 150 million (€ 127.3 million) loan to acquire the remaining stake he does not already own in the company behind Conor’s Proper No Twelve whiskey McGregor.

Becle earlier this month revealed in a note with her fourth quarter results that she would acquire a 51% stake in Eire Born Spirits. The investment includes buying out the mixed martial arts fighter’s stake in the business, which is expected to result in a significant payday for McGregor.

Becle, who acquired the Bushmills brand from Diageo in 2014, took an initial stake in Eire Born when it was founded by McGregor, his manager – Audie Attar, CEO of Paradigm Sports Management, and the entrepreneur of the sports industry. Ken Austin spirits, in 2019.

He exercised an option last year to increase his stake in Eire Born to 49% in a deal that valued the company at $ 235 million (€ 199 million).

Proper No Twelve launched in September 2018, initially in Ireland and the United States. The brand, also available in the UK and Australia, sold a six-month allowance in its first 10 days.

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While sales lagged significantly behind the top three Irish whiskey brands – Jameson, Tullamoe Dew and Bushmills – Proper No Twelve edged out Paddy, Kilbeggan, Powers and Teeling to become the world’s fourth most popular brand in 2019.

Becle said Monday it has borrowed $ 150 million in financing under a new term credit facility to fund additional shares in Eire Born in a deal expected to be finalized in the coming days. The transaction is still subject to regulatory closing conditions.

No financial details were released regarding the deal other than news of the credit facility.

Guinness parent company Diageo has agreed to trade Bushmills with Becle’s flagship brand Jose Cuervo in a deal to acquire full control of Tequila Don Julio for $ 408 million ($ 346 million ‘euros) in cash at the end of 2014.

Proper No Twelve is made at the Bushmills Distillery in County Antrim.

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