Bermuda-based Bacardi Ltd. will purchase a significant minority stake in the internationally-renowned tequila brand Patrón.

John Paul DeJoria, co-founder of Patrón tequila said the agreement will make way for the funding of a children's charitable trust, while investing in the continued growth of the company.

Although the specific terms of the agreement are confidential, they provide for Mr. DeJoria to become principal owner of the parent company of The Patrón Spirits Company so he can further develop the brand.

Bacardi and Patrón intend to operate independently from each other and the agreement does not provide for changes in the day-to-day operations of Patrón or in Patrón's management or distributor network. Under the agreement Bacardi will hold one seat on the board of directors of Patrón's parent company, Caribbean Distillers Corp.

Barry Kabalkin, vice-chairman of Bacardi, will be appointed to the board. He said: "Patrón is one of the fastest growing products in the entire spirits industry, and becoming a significant shareholder is a fantastic opportunity for Bacardi. We are a family-controlled company with a strong entrepreneurial spirit and global culture, and are proud of our highly focused portfolio of iconic brands. We now look forward to teaming up with Ed Brown, with the goal of enhancing the size and scope of the market for Patrón tequila, an already incomparable brand."

The transaction will result in a payment to the estate of the late Martin Crowley, who started Patron with Mr. DeJoria, in exchange for its interest in the company. In accordance with the terms of Mr. Crowley's will, the estate will contribute the money to the Windsong Trust, a charitable trust created by Mr. Crowley to support the education of underprivileged children across the globe.

Facundo L Bacardi, chairman of the board of Bacardi, said: "John Paul DeJoria and Martin Crowley are to be congratulated for creating an extraordinary, handcrafted product and achieving its enormous success in the marketplace - and for their contribution to the growth of the tequila industry overall. We look forward to this new relationship and to working together."

Bacardi will purchase the stake through a subsidiary and it is expect that it will be finalised within 60 days.