After months of contentious arbitration and litigation in multiple courts, the liquor giant is to buy out a majority of the Hip Hop mogul’s 50% stake in the cognac company, D’Usse LLC, leaving Bacardi owning at least 75.01% of the business according to Bloomberg Law
The deal’s full terms weren’t disclosed. Jay-Z has maintained throughout the public dispute that D’Usse is worth at least $3 billion and court papers show Bacardi previously rejected his $1.5 billion bid for its 50% stake. Mr. Carter, will retain “a significant ownership stake” through his company SC Liquor LLC, according to the press release.
In 2012, Mr. Carter and Bacardi partnered to launch D’USSÉ Cognac. The brand has been the best-performing cognac outpacing the overall U.S category with growth of more than 30 percent in the past three years.
“Growing D’USSÉ over the past decade from an idea to one of the fastest-selling spirits in history has been a blessing. The next phase of this journey will further cement D’USSÉ’s legacy as one of the world’s most respected brands. I am excited to renew this partnership with Bacardi” Jay said in a statement.
Evercore served as the exclusive financial advisor to Shawn “JAY-Z” Carter, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, Gibson, Dunn & Crutcher LLP and Reed Smith LLP served as legal advisors.