Cuervo owner borrows $150m to buy Proper No. Twelve

Jose Cuervo owner Becle has secured a US$150 million loan to pay for the remaining stake in the company behind Conor McGregor’s Proper No. Twelve Irish whiskey.

Mexico-based Becle’s acquisition of the remaining stake in Eire Born Spirits (EBS), producer of Proper No. Twelve, is expected to close in the second half of 2021.

The deal will be funded with a combination of cash and a US$150m loan through a credit facility.

The transaction is subject to certain regulatory and customary closing conditions.

Becle said the terms of the deal are confidential and it expects to make a further announcement when the acquisition is completed.

On 24 April 2020, the Tequila maker completed its purchase of an additional 29% stake in EBS, taking its ownership in the company up to 49%.

EBS owns and markets the Proper No. Twelve blended Irish whiskey brand, which is made at Becle’s Old Bushmills Distillery in Northern Ireland.

Professional fighter McGregor first launched Proper No. Twelve in Ireland and the US in September 2018. The brand has since expanded its availability to the UK, Australia, and Canada.

The Mexican drinks firm said it is dedicated to upholding a ‘strong balance sheet with financial flexibility to achieve its long-term growth strategy’.

Becle holds MXN10.753m Mexican pesos (US$519,000) in cash and cash equivalents as of the end of 2020.