Brown‑Forman Corporation announced last October the agreement to purchase the Diplomático Rum brand and related assets from Destillers United Group S.L.
EY Central America rendered integral and multidisciplinary advisory services to Destillers United Group (DUG) with the participation of several lines of business of the firm, including Tax, Law, Labour, Financial and Environmental, as well as EY teams from different jurisdictions around the world, out of Central America, such as Spain, Portugal, Colombia, and the United States.
Destillers United Group S.L. will continue to produce and age the unique, carefully-crafted, and complex Diplomático Rum in their original distillery at the foot of the Andes mountains.
According to EY, “this is one of the largest transactions in which EY Central America has participated, which confirms the value added that for our clients represent the multidisciplinary capacities with integrated services and a global footprint.”
The EY Central America Tax and Law teams had crucial participation during the transaction, supporting the client during the Due Diligence and negotiation phases. EY’s team was led by Luis Eduardo Ocando B. Country Managing Partner at EY Panama. He worked with a team conformed by EY Central America Tax managing partner Rafael Sayagues, EY Central America Law managing partner Hernán Pacheco, and Tax partner Carlos Márquez, TAX. The team also counted on the support of lawyers Ana Clement, Carlos Escalona, TAX, and from EY Spain International Tax partner Iñigo Alonso and senior manager Celia Rompinelli Hernandez.
Luis Eduardo Ocando B. stated: “This transaction ratifies the trust relationship developed with our client over many years of service. Thanks to super teamwork, a high professional level, and technical expertise within the firm, we were able to deliver world-class integrated services involving all of the EY Central America business lines in this project.”
According to the information, the sellers also retained the services of McDermott, Will, and Emery (MWE) as US counsel, as the transaction documents are governed by Delaware Law and given the ample experience this firm has in the beverages industry. The client also retained Angel Advisers, INC. (AA) who worked as an Investment Banking Boutique (Tatiana J. Whytelord, Daniel Herrera Oropeza, and Luis Eduardo Ocando B. (double role with the EY Role) are the main partners of AA.
Closing is expected to occur in January 2023.
On the other hand, Uría Menéndez has also advised Destillers United Group with a team formed by partners José Félix Zaldívar (Corporate, New York), Miguel Stokes (Corporate, Lisbon) and Andre Pestana Nascimento (Employment, Lisbon), counsels Álvaro Navarro (Employment, Madrid) and Luis Suárez de Centi (Tax, New York), and associates Borja de la Macorra (Employment, Madrid), Bruno Silva Palhão (Corporate, Lisbon).
Cuatrecasas advised the US company Brown-Forman Corporation (Brown Forman) on the acquisition of the Destillers United Group companies domiciled in Portugal, Spain and Panama, which produce, market and distribute Ron Diplomático. The Cuatrecasas team that participated in the transaction, together with US law firm Gibson, Dunn & Crutcher LLP (with a team led by partner Kristen Poole), was made up of M&A and Corporate partners Javier Martí-Fluxá and Marco Antonio Sanz, together with lawyers Carlota Tojo and María Corzo, who were supported by Cuatrecasas Portugal, with partner João Mattamouros Resende and lawyer Pedro Sousa Gonçalves.